-The Table Above Shows the Distribution of Income in Swacko

question 105

Multiple Choice

-The table above shows the distribution of income in Swacko. The government of Swacko imposes a 20 percent tax on the people with the highest 40 percent of income. The government then distributes 50 percent of the tax collected to the lowest 20 percent and 25 percent to the second 20 percent and the middle 20 percent. Suppose that the before-tax group incomes remain as above. Before and after the distribution, what percentage of national income belongs to the lowest 20 percent?

• A) 2 percent; 10 percent
• B) 20 percent; 20 percent
• C) 5 percent; 25 percent
• D) 2 percent; 2 percent

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Definitions:

Sample Mean

The average value of a random sample taken from a population.

Symbols

Characters or marks used to represent objects, quantities, or concepts in various fields like mathematics, music, and art.

Sample

A subset of individuals or observations selected from a larger population for the purpose of statistical analysis.

Linear Association

A relationship between two variables where a change in one variable is associated with a proportional change in the other variable.