Assume that income inequality has increased between 2000 and 2010 in the United States. Assume that both mean and median incomes
are $40,000 in 2000 and that median income remains constant through 2010. 1.) Using the line drawing tool, draw a line representing median income from 2000 to 2010. Label your line appropriately. 2.) Using the line drawing tool, draw a line for mean income to represent a rising degree of income inequality over time. Label your line appropriately. Carefully follow the instructions above and only draw the required objects.
1 answer:
Answer:
The mean income is the average income of all households in the country, while the median income divides the total into two groups, those who earn above the median and those who earn below the median (i.e. the median would be middle point.)
If income inequality has increased then the mean income should rise above the median income since it is affected by extremes, e.g. the 10% richest earn 9 times more income than the lower 90%.
Since we are not given the increase in income inequality, we can assign any positive slope to the mean income.
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