1. Income inequality and the poverty rate The following table summarizes the income distribution for the...

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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 2010, the poverty line is set at an annual income of $42,575 for an individual. Note: This question uses quintiles, which are a statistical value of a data set that includes 20% of the population. This means that the population has been divided into fifths, where the first quintile is the lowest 20% of the values of the variable of interest, and so on to the fifth quintile, which is the highest 20% of the values. Share of Total Income in Perkopia (Percent) Year Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Highest Quintile 1998 4.0 10.0 16.5 23.0 46.5 2004 3.8 9.9 15.0 22.5 48.8 2010 3.4 9.4 14.9 22.0 50.3 2016 3.2 7.6 14.0 21.7 53.5 The data in the table suggest that there was income inequality from 1998 to 2016. 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 2010, the poverty line is set at an annual income of $42,575 for an individual. Note: This question uses quintiles, which are a statistical value of a data set that includes 20% of the population. This means that the population has been divided into fifths, where the first quintile is the lowest 20% of the values of the variable of interest, and so on to the fifth quintile, which is the highest 20% of the values. Share of Total Income in Perkopia (Percent) Year Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Highest Quintile 1998 4.0 10.0 16.5 23.0 46.5 2004 3.8 9.9 15.0 22.5 48.8 2010 3.4 9.4 14.9 22.0 50.3 2016 3.2 7.6 14.0 21.7 53.5 The data in the table suggest that there was income inequality from 1998 to 2016.