Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 18, Problem 6P
To determine
The method for the official poverty level as calculated by the U.S. Department of Agriculture and the government assistance programs that the Census Bureau considers or ignores when calculating household income
Concept Introduction:
Official Poverty Level – It is an economic measure to find out whether the family or individual with certain income level qualifies for government assistance.
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Students have asked these similar questions
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 2001, the poverty line is set at
an annual income of $30,000 for an individual.
Share of Total Income in Perkopia
(Percent)
Year
Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Highest Quintile
2001
5.0
11.0
16.0
24.0
44.0
2007
3.9
9.7
15.2
22.6
48.6
2013
3.5
8.8
14.7
22.0
51.0
2019
3.0
8.6
14.0
21.5
52.9
The data in the table suggest that there was
v income inequality from 2001 to 2019.
Complete the following table to help you determine the poverty rate in Perkopia in 2001. 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 individual…
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 2012, the poverty line is set at
an annual income of $40,850 for an individual.
Year
1994
2000
2006
2012
Lowest Quintile
4.0
3.8
3.4
3.0
Share of Total Income in Perkopia
(Percent)
Middle Quintile Fourth Quintile
Second Quintile
10.0
9.7
8.8
8.2
The data in the table suggest that there was
16.5
15.0
14.8
14.0
23.0
22.5
22.0
21.8
Highest Quintile
46.5
49.0
51.0
53.0
income inequality from 1994 to 2012.
Complete the following table to help you determine the poverty rate in Perkopia in 2012. 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 individual…
Explain how a person can be employed and still be living under the poverty threshold. Please help, thank you(:
Chapter 18 Solutions
Econ Micro (book Only)
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