Answer:
The total income earned by households in this economy is:
$4,700,000,000
Explanation:
a) Data and Calculations:
Household population = 100,000
Low earners = 60% with annual income of $25,000 each
Mid earners = 30% with annual income of $70,000 each
High earners = 10% with annual income of $110,000 each
60% of the population = 60,000 (100,000 * 60%) households
30% of the population = 30,000 (100,000 * 30%) households
10% of the population = 10,000 (100,000 * 10%) households
Total income earned by the households:
Low earners = 60,000 * $25,000 = $1,500,000,000
Mid earners = 30,000 * $70,000 = 2,100,000,000
High earners = 10,000 * $110,000 = 1,100,000,000
Total income earned in the economy $4,700,000,000
