This question is based on the following chart below. 1999 Avg 1977 Avg Income Income Group Income Lowest fifth $10,000 $8,000 Second fifth $22,100 $20,000 Middle fifth $32,400 $31,400 Fourth fifth $42,600 $41,500 Highest fifth $74,000 $102,300 Top 1% $234,700 $515,600 Source: Center on Budget and Policy Priorities (CBPP) The Center on Budget and Policy Priorities (CBPP) breaks the U.S. population into fifths based on the after-tax household income level. Which conclusion can be drawn based on the facts in this chart comparing 1999 to 1977 average income? OA. The middle-fifth income group demonstrated more of an increase than the lowest- fifth in earnings. B. The highest-fifth income group demonstrated the greatest increase in earnings. C. Only two income groups demonstrated a decline in earnings. D. All income groups increased their average incomes in 1999. E. The top 1% income group's earnings increased more than that of the other income groups.

In a hypothetical economy, Clancy earns $37,000, Eileen earns $74,000, and Hubert earns $111,000 in annual income. The following table shows the annual taxable income and tax liability for these three single individuals. For example, Clancy, who earns $37,000, owes $9,250 in taxes. Use the tax liability figures provided to complete the following table by computing the average tax rate for Clancy, Eileen, and Hubert with an annual income of $37,000, $74,000, and $111,000, respectively. Taxable Income Tax Liability Average Tax Rate Taxable Income (Dollars) (Dollars) (Percent) Clancy 37,000 9,250 Eileen 74,000 11,100 Hubert 111,000 11,100 The income tax system for this country is

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1. Income inequality and the poverty rate The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2007, the poverty line is set at an annual income of $42,350 for an individual. Year Lowest Quintile Second Quintile 2001 2007 2013 2019 3.0 3.4 3.8 5.0 Share of Total Income in Perkopia (Percent) 8.6 9.4 9.7 11.0 The data in the table suggest that there was Middle Quintile Fourth Quintile 14.0 14.6 15.2 15.5 21.9 22.4 22.9 25.0 Highest Quintile 52.5 50.2 48.4 43.5 income inequality from 2001 to 2019. MacBook Pro Complete the following table to help you determine the poverty rate in Perkopia in 2007. To do this, begin by determining the total income of all individuals in each quintile using the fact that total annual income in the economy is $500,000,000. Next, determine the income of an…