Question

Imagine an economy of 10 individuals. their annual incomes are reported below. approximately what percentage of this economy's income is held by the poorest 40% of the population? name income name income john $1000 bob $300 kitty $800 salman $700 walter $200 dora $600 steve $500 anna $100 samuel $800 oprah $900

Answer 1

Answer:

Approximately 18.64% of this economy's income is held by the poorest 40% of the population.

Explanation:

In an economy of 10 individuals, the poorest 40% of the population means the poorest 4 individuals.

from the table, the poorest 4 individuals are:

Anna, Walter, Bob and Steve.

total income of the poorest 4 individuals = $100 + $200 + $300 + $500

= $1,100

total income of all the individuals in the population = $1000 + $300 + $800 + $700 + $200 + $600 + $500 + $100 + $800 + $900

= $5,900

The percentage of the economy's income held by the poorest 40% is given by:

= [(total income of the poorest 4 individuals)/(total income of all the individuals in the population)]*100

= [($1,100)/$5900]*100

= 18.64%

Therefore, Approximately 18.64% of this economy's income is held by the poorest 40% of the population.