5 5 Calendar MindTap - Cengage Lea X Income inequality and the $ 3 Refund Selection + X https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=581353222158121530708104710&elSBN=9781337621410&id=750880308&snapshotld=1664999& . . . Joanne v CENGAGE | MINDTAP Q Search this course ? MAIN MENU Homework: The Distribution of Income and Poverty (Ch 28) X each qumule by dividing the total income of trial quinure by the number of people in that quintile. ( Hint: Recall that Perkopia nas a population of My Home 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of $40,700. Courses Share of Income in 2012 Total Income Individual Income CENGAGE UNL Quintile Percent) (Dollars) (Dollars) Below Poverty Line? A-Z Lowest 3.2 Browse Catalog Second 8.2 Partner Offers Middle Yes 14.0 Fourth 21.6 No Print Options Highest 53.0 College Success Tips Using the information in the previous table, the poverty rate in Perkopia in 2012 is _. (Hint: The poverty rate is the share of the population below the poverty income threshold.) Career Success Tips 1 2 RECOMMENDED FOR YOU Suppose that the government introduces a welfare program in which any individual with an income of less than $40,700 per year receives a lump-sum bongo transfer payment of $2,000 from the government. Assume that, in the short run, there is no change in labor-supply behavior among the people in Study Tools Perkopia. In the year 2012, the poverty rate after the introduction of the welfare program in Perkopia is_ Study Tools for Principles of Economics Again, suppose the government introduces a welfare program in which any individual with an income of less than $40,700 receives a lump-sum . . . . transfer payment of $2,000 from the government. Alyssa, a resident of Perkopia who currently earns an income of $40,406, has the opportunity to work overtime and earn an additional $1,100 this year. ? Help At Which of the following statements are correct? Check all that apply. Give Feedback The $2,000 in aid presents a disincentive for Alyssa to make more than $40,700 per year. Alyssa may accept the overtime if she feels that taking it will increase the chances of her receiving a significant promotion. O Alyssa would gain more income by turning down the overtime than she would if she accepted the overtime. O O e w DX 5:08 PM E5 5 Calendar MindTap - Cengage Lea X Homework Help - Q&A fror 3 Refund Selection *Course Hero + v X https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=581353222158121530708104710&elSBN=9781337621410&id=750880308&snapshotld=1664999& . . . Joanne v CENGAGE | MINDTAP Q Search this course ? MAIN MENU Homework: The Distribution of Income and Poverty (Ch 28) X 2. Constructing a Lorenz curve from income shares data My Home The following table shows the approximate income distribution for Pakistan, Cambodia, and Brazil in 2013. In particular, it shows the income shares of Courses each quintile of the income distribution. CENGAGE UNL A-Z Browse Catalog Percentage of Total Income, 2013 Income Group Pakistan Cambodia Brazil Partner Offers Lowest quintile 9 Second quintile 11 10 6 Print Options Third quintile 15 13 11 Fourth quintile 21 20 19 College Success Tips Highest quintile 44 50 61 Career Success Tips RECOMMENDED FOR YOU bongo has the most total income. Study Tools On the following graph, plot the Lorenz curves for the three countries. Plot Pakistan's Lorenz curve using the green points (triangle symbol), Study Tools for Principles of Cambodia's Lorenz curve using the blue points (circle symbol), and Brazil's Lorenz curve using the purple points (diamond symbol). Line segments will automatically connect the points. Economics . . . . ? ? Help At Give Feedback 100 A NTAGE OF INCOME 80 Pakistan O 60 Cambodia O O e W 6 0 x 5:10 PM5 5 Calendar MindTap - Cengage Lea X Homework Help - Q&A fror 3 Refund Selection *Course Hero + v X https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=581353222158121530708104710&elSBN=9781337621410&id=750880308&snapshotld=1664999& . . . Joanne v CENGAGE | MINDTAP Q Search this course ? MAIN MENU Homework: The Distribution of Income and Poverty (Ch 28) X My Home On the following graph, plot the Lorenz curves for the three countries. Plot Pakistan's Lorenz curve using the green points (triangle symbol), Courses Cambodia's Lorenz curve using the blue points (circle symbol), and Brazil's Lorenz curve using the purple points (diamond symbol). Line segments will CENGAGE UNL automatically connect the points. A-Z Browse Catalog (? Partner Offers Print Options 100 College Success Tips CUMULATIVE PERCENTAGE OF INCOME 80 Pakistan Career Success Tips 1 2 60 Cambodia RECOMMENDED FOR YOU bongo Study Tools 40 Brazil Study Tools for Principles of 20 Economics . . . . ? 20 40 60 80 100 Help CUMULATIVE PERCENTAGE OF HOUSEHOLDS At Give Feedback has the most income inequality. (Hint: You may want to refer to your previous answers.) Grade It Now Save & Continue Continue without saving O O e w D X 5:10 PM5 5 Calendar MindTap - Cengage Lea X Income inequality and the p 3 Refund Selection + X https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=581353222158121530708104710&elSBN=9781337621410&id=750880308&snapshotld=1664999& . . . Joanne v CENGAGE | MINDTAP Q Search this course ? MAIN MENU Homework: The Distribution of Income and Poverty (Ch 28) X A My Home 6. Income inequality and the poverty rate Courses 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 income CENGAGE UNL A-Z threshold, or poverty line, is set at an annual income of $40,700 for an individual. Browse Catalog Partner Offers Share of Total Income in Perkopia (Percent) Print Options Year Lowest Quintile Second Quintile Middle Quintile Fourth Quintile Highest Quintile 1994 5.0 11.0 16.0 24.0 44.0 College Success Tips 2000 3.8 9.7 15.2 22.8 48.5 2006 3.3 90 14.7 22.4 50.6 Career Success Tips 2012 3.2 8.2 14.0 21.6 53.0 RECOMMENDED FOR YOU bango Study Tools The data in the table suggest that there was an increase in income inequality from 1994 to 2012. Study Tools for Principles of Economics . . . . 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 in ? Help each quintile by dividing the total income of that quintile by the number of people in that quintile. (Hint: Recall that Perkopia has a population of At 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of Give Feedback $40,700. Share of Income in 2012 Total Income Individual Income Quintile (Percent) (Dollars) (Dollars) Below Poverty Line? O Lowest 3.2 Second 8.2 Yes O O e W O X (7 5:07 PM