3. Income mobility and inequality in economic status Officials in Fluxemburg are concerned about the current level of income inequality in their country, where the highest quintile of families currently earns 60% of the country's income. The central government has income information on its citizenry, and they want you to help them interpret the data from a 10-year period. The following table gives data on how families have moved between income quintiles between the years shown. Fill in the missing values in the distribution table for families in Fluxemburg; then use the information in the table to answer the following questions. Income Distribution in 2000 (Percent) Income Distribution in 1990 Highest Quintile Second Quintile Third Quintile Fourth Quintile Lowest Quintile Highest Quintile 65 13 12 6 4 Second Quintile 12 51 10 11 Third Quintile 18 52 16 5 Fourth Quintile 8 11 57 14 Lowest Quintile 6 8 9 66 Looking at families in the lowest quintile of income in 1990 (bottom row), you can report that % of families in the lowest quintile moved into a higher quintile of income distribution by 2000. Now look at the percentage of families in each quintile that remained in the same quintile between 1990 and 2000. In each quintile, a of families moved to a different quintile. This implies that Fluxemburg has economic mobility.4. Computing the implicit marginal tax rate Suppose Kevin is a single parent with one child, and he is trying to determine the effect of transfer benefits and taxes on his implicit marginal tax rate (and thus his incentive to work). The following table shows the transfer benefits and income taxes at various income levels in the economy in which Kevin resides. Compute the spendable income level Kevin would have at each level of earned income and enter these values in the last column of the table. Earned Income from Work Transfer Benefits Income and Employment Taxes Spendable Income (Dollars) (Dollars) (Dollars) (Dollars) 0 9,498 9,498 6,000 8,704 320 12,000 7,338 848 18,000 5,554 1,423 24,000 2,280 2,124 30,000 1,303 2,894 If Kevin's income from work increased from $18,000 to $24,000, his implicit marginal tax rate would be If Kevin's income from work increased from $24,000 to $30,000, his implicit marginal tax rate would be