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a. In country A, the population is 328 million and 102 million people are living below the poverty line. What is the poverty rate? b.

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a. In country A, the population is 328 million and 102 million people are living below the poverty line. What is the poverty rate? b. In country B, the population is 211 million and 57 million people are living below the poverty line. What is the poverty rate? 7. (2 points) Imagine a particular city enacts a policy granting every city resident a $20,000 per year universal basic income. No matter the income an individual earns from working, this $20,000 per year level of government support will never reduce for people who live in that city. Now suppose Mary is considering her work and leisure choices for the year. Mary earns $22 per hour working and can work up to 2,000 hours during the year. With the information provided, fill in the table below (for a related example, see table 15.4 in our textbook). Amount worked (hours) Total earnings from work Government support Total income O 0 $20,000 $20,000 500 $20,000 1.000 $20,000 1,500 $20,000 2,000 $20,000 8. (2 points) Suppose that the table below shows the share of aggregate income received by each fifth and the top 5 percent of U.S. households in 2020 and 2021. Lowest Second Fourth Highest Top Year Quintile Third Quintile Quintile Quintile Quintile 5% 2020 3.6 8.9 14.8 23.0 49.8 22.1 2021 3.8 9.9 17.0 26.9 42.4 22.0 Based on the data in the table, did the U.S. income distribution become more or less unequal over time? (Note: it may be helpful for you to plot the Lorenz Curve in order to visualize the answer--see section 15.4 in our textbook.)

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