08 Jun Question Economics Homework U.S. Distribution of Income (2000)
Question
Economics Homework
U.S. Distribution of Income (2000)
Quintile
Percentage share of income
Lowest fifth
3.6
Second fifth
8.9
Third fifth
14.9
Forth fifth
23.0
Highest fifth
49.6
Question #2. Suppose that the voters in the U.S. have decided through a ballot measure to tax the richest quintile by 10 percent. The tax will then be redistributed evenly to the poorest two quintiles.
(2A) What is the share of income that the richest quintile now shares?
(2B) What is the share of income that the poorest quintile now shares?
(2C) What is the share of income that the 2nd poorest quintile now shares?
(2D) Is the income distribution more equal after this policy has been implemented? Explain?
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