Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Big changes can happen to wealth distribution. In the twentieth century those were WWII and the Reagan presidency. Both profoundly changed wealth distribution. Below we

Big changes can happen to wealth distribution. In the twentieth century those were WWII and the Reagan presidency. Both profoundly changed wealth distribution. Below we have an economy undergoing such a transition in periods A, B. Given are decile distributions (example, for the poorest 20% of the population system A pays 4% of the countrys wealth to this segment whereas B pays 2%).

CAUTION: The deciles below are cumulative, hence any change is carried forward and felt long after. For example decile 30% have a 3 (9-6) difference. However the difference really is only 1 (9-4 versus 62).

% Population % Income A % Income B

10 1 1

20 4 2

30 9 6

40 16 12

50 25 20

60 36 31

70 49 44

80 64 60

90 81 78

100 100 100

1.Despite both 10% being paid the same, system _ pays more to decile 20% through _ %.

a.How many of the middle deciles are paid the same?

b.These same paid deciles are:

2.The biggest difference between the two systems is what is paid to decile _ %. 5.Of all data in both systems, the decile paid the most is _ % in system _

3.System _ has a more equitable wealth distribution.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic Accounting And Financial Statement Fraud Forensic Accounting Performance

Authors: Zabihollah Rezaee

1st Edition

1949991075, 978-1949991079

More Books

Students also viewed these Accounting questions

Question

1. Understand how verbal and nonverbal communication differ.

Answered: 1 week ago