Suppose that income of the average person among the poorest 20% of citizens in N

Question

Suppose that income of the average person among the poorest 20% of citizens in Nsmbis is $2000. What is the average income of a person who is among the riches 20% of citizens in Nsbia?( Round to the nearest dollar.)

9 See Hint SNAPSHOT Income Inequality around the World The rich get richer, and the poor get poorer" is a simple yet profound think about income make less, the just extreme wealth or extreme poverty that leads to huge gaps between those at the very top and those at the very bottom. way to As top earners make more and bottom earners inequality rate increases It's a combination of these factors, not Income earned by top 20% income earned by beem 20% heqwlity nto "Pomer rate Namibia 19.6 Brazil 16.9 Less developed countries, like Namibia, have high rates of fraction of the income of the affluent. I BOOKMA Poverty is not the only factor of inequality howewer. When the top eamers are highly successtul, the gap between United States 9.8 rich and poor grows. The United States has a poverty rate samila, to Japan's but a top 20% who eam more than Japan's top class. 3:24 a REVIEW QUESTIONS Suppose the top 20% of Brazilian earners make, on average, the equivalent of $100,000 a year. What does the earner in the bottom 20% make? Japan average 16.1 08/02/20 - A triend tells you he wants to live irn a world without income inequality Discuss the pros and cons using at least one of the five foundationa of economics from Chapter 1 mnDopment Repos 2045, CIA World Factbook 08/02/20 Suppose that the income of the average person among the person who is among the richest 20% of citizens in Namibia? (Round to the nearest dollar) poorest 20% of citizens in Namibia is $2000 what is the average income of a $1 Click to see your image post 07/28/20

Explanation / Answer

Solution:

Since, it isn't mentioned which income inequality measure is used above for the income inequality rate, assuming it to be income quintile share ratio (or S80/S20) which is equal to

mean income received by 20% population with highest income (or top quintile)/mean income received by 20% population with lowest income (or bottom quintile)

We are given income inequality rate = 19.6

Then, as per given details, 19.6 = top 20%/2000

top 20% = 2000*19.6 = $39,200

So, average income of a person who is among richest 20% of citizens in Namibia = $39,200

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