Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 2, Problem 1A
(a)
To determine
Manner of representation on the graph when the income inequality increased over the past
(b)
To determine
Manner of representation of workers categories in the manufacturing sector of a country.
(c)
To determine
Manner of representation of the median income in Alabama and Connecticut in
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Question 15
Which of the below statements is INCORRECT with regard to poverty in the U.S.?
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Please write down only the answers. Attachment screenshot is for your reference as well.
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 $27,400 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
3.8
9.9
15.2
22.5
48.6
2013
3.5
9.2
14.8
22.0
50.5
2019
3.2
8.2
14.0
21.5
53.1
The data in the table suggest that there was_______ [NO Change In (OR) NO Evidence Of (OR) An Increase In (OR) A Decrease In] income inequality from 2001 to 2019.
Complete the following table to help you determine the poverty rate in Perkopia in 2007.…
Chapter 2 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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- A group of 10 people have the following annual incomes: 55,000,30,000,15,000,20,000,35,000,80,000,40,000,45,000,30,000,50,000. Calculate the share of total income each quintile of this income distribution received. Do the top and bottom quintile s in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2005?arrow_forwardWhat are some reasons why a certain degree of inequality of income would be expected in a market economy?arrow_forwardThe data in the table below shows the income of some random people in Massachusetts. If these were the only people in Massachusetts what is the average (absolute) difference in income among all the pairs? nаme Pre-tax income Mayor Wu $20 Tom Brady $120 Matt Damon $60 QUESTION 12 (continued) What is the Gini coefficient for Massachusetts?arrow_forward
- Actual Distribution of Wealth in the US Source: Adapted from the video "Wealth Inequality in America," 2012. Note: This document uses 2009 data. As of 2017, this inequality had only become greater. In this graph, the population of 300-plus million Americans is reduced to a representative group of 100 people. So, each person in this image represents 1% of the population. This group of 100 people has been lined up according to their wealth, poorest people on the left, wealthiest on the right. These 100 people have been shaded based on which 20% quintile they fall into. Then, the total wealth of the United States, which was roughly $54 trillion in 2009, was distributed among our 100 Americans. The poorest Americans don't even register, they are down to pocket change, and the middle class is barely distinguishable from the poor. 1% of America has 40% of all the nation's wealth, the bottom 80% only has 12% between them. The top 1% own half the country's, stocks, bonds and mutual funds. The…arrow_forwardBeing able to work with and understand percentages and ratios is important in many different careers. Consider each of the following situations that require work with percentages or ratios. a. Some government funding is related to the number of people living in poverty in a particular area. The 2010 population of Caswell County, NC, was 23,719 and 21.7% of the people were living in poverty. (Source: quickfacts. census.gov/qfd/states/37/37033.html) How many people were living in poverty in Caswell County, NC, in 2010? b. Wisconsin farmers received an average price of $17.60 per 100 pounds for their milk in April 2012, down $1.60 from April 2011. By what percentage did the average price of milk decrease between April 2011 and April 2012? (Source: www.nass.usda.gov/Statistics_by_State/Wisconsin/Publications/Dairy/mkallpri.pdf) c. The Centers for Disease Control estimates that 1 in 6 people in the United States suffer food poisoning in any given year. At the beginning of 2012, the…arrow_forwardPoverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The official definition of the poverty line traces back to Group of answer choices A)The Great Depression B)Mollie Orshansky, whose idea was to define a poverty line based on the cost of a healthy diet. C)1953 and the ability to pay for housing and food. D)The 1965 cost of providing food, housing, and transportation.arrow_forward
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