Consider the town of Acaford with a population of 5,000 people. There are 1,000 high school students, 1,000 undergraduate students, 1,000 graduate students, 1,000 economics professors, and 1,000 retired economists. Suppose that the total annual income in the economy is $100 million: Each high school student earns $7,000 annually; each undergraduate earns $12,000 annually; each graduate student earns $20,000 annually; each professor earns $56,000 annually; and each retiree earns $5,000 annually.

The following chart shows the income distribution for the town of Acaford.

6050403020100SHARE OF TOTAL INCOME (Percent)HighSchoolUndergradsGradsProfsRetirees

Suppose that the government sets the poverty line at an annual income of $10,000. The percentage of people with annual incomes below the poverty line in Acaford is .

Which of the following sequences correctly orders the people of Acaford from the bottom fifth to the top fifth of income distribution?

Graduate students, professors, high school students, undergraduates, retirees

High school students, retirees, graduate students, professors, undergraduates

Retirees, graduate students, undergraduates, high school students, professors

Retirees, high school students, undergraduates, graduate students, professors

Given your previous answers, the income distribution in Acaford show income inequality.