Back to Assignment Attempts Average/5 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 542,575 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. Year Lowest Quintile 4.0 Highest Quintile 46.5 1998 Share of Total Income in Perkopia (Percent) Second Quintile Middle Quintile Fourth Quintile 10.0 16.5 23.0 0.0 15.0 22:5 9.4 14.9 22.0 7.6 14.0 21.7 2004 3.8 48.8 50.3 2010 3.4 3.2 2016 53.5 The data in the table suggest that there was Income inequality from 1998 to 2016 Complete the foliowing table to help you deterruine the poverty rate in Perkara in 2010. To do the begin by determining the total deicome of all individuals in each cuintile using the fact that total annual income in the economy $500.000.000. Nextdetermine the income of an individual in each quintile by dividing the total income of the quindle by the number of people in that quintale. (Hint: Recall that Perkong has a population or 10,000 people. Finally, determine whether the individual income for each inte alls below the poverty line of 42575 Share of income in 2010 Total Income Individual income Brimile cata Relovawarderime O Type here to search Line Ball Dollar 20 Questions The data in the table suggest that there was income inequality from 1998 to 2016 Complete the following table to help you determine the poverty rate in Perkopla in 2010. 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 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 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty line of 42575. Share of income in 2010 (Percent) Quintile Lowest Second Middle Individual Income (Dollars) 3.4 Below Poverty Line? 9.4 Total Income (Dollars) 17,000,000 47,000,000 74,500,000 110,000,000 8,500 23,500 14.9 Fourth 22.0 37,250 Highest 50.3 125,750 Using the information in the previous table, the poverty rate in Perkopla in 2010 Suppose that the government introduces a welfare program in which any Individual with an income of less than $47.575 per yeat receives a lump-sum transfer payment of $7,000 from the government. Assume that, in the short run, there is no change in labour supply behaviour among the people in Perkopia In the year 2010, the poverty rate after the introduction of the welfare program in Perkopla Again, suppose the government introduces a welfare program in which any individual with an income of less than $42,575 receives a lump sum transfer payment of $7,000 from the government. Yakow, a resident of Perkopla who currently warto an income of $42,12 has the opportunity to work overtime and earn an additional $1,500 this year Which of the following statements are correct? Check all that apply. Yakoy would gain more Income by turning down the overtime than he would the accepted the overtime the $7,000 in aid presents a disincentive for Yakov to make more than 412.525 per year Yakov may accept the overtime if he feels that taking it will increase the chances of his receiving a significant promotion Type here to search