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 $15,000 annually; each graduate student earns $25,000 annually; each professor earns $50,000 annually; and each retiree earns $3,000 annually. The following chart shows the income distribution for the town of Acaford. 60 50 10 SHARE OF TOTAL INCOME (Percent) 20 10 0 HighSchool Undergrads Grads Profs Retirees Suppose that the government sets the poverty line at an annual income of $5,000. 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 O Retirees, high school students, undergraduates, graduate students, professors ◇ Retirees, graduate students, undergraduates, high school students, professors Given your previous answers, the income distribution in Acaford show income inequality.

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 $15,000 annually; each graduate student earns $25,000 annually; each professor earns $50,000 annually; and each retiree earns $3,000 annually. The following chart shows the income distribution for the town of Acaford. 60 50 10 SHARE OF TOTAL INCOME (Percent) 20 10 0 HighSchool Undergrads Grads Profs Retirees Suppose that the government sets the poverty line at an annual income of $5,000. 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 O Retirees, high school students, undergraduates, graduate students, professors ◇ Retirees, graduate students, undergraduates, high school students, professors Given your previous answers, the income distribution in Acaford show income inequality.

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter9: Demand-side Equilibrium: Unemployment Or Inflation?

Section: Chapter Questions

Problem 2DQ

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