Use the Accompanying Table, Which Represents the Distribution of Income

question 40

Multiple Choice

Use the accompanying table, which represents the distribution of income in the countries of Mateer and Coppock, to answer questions. $\begin{array} { l }\text { Mateer }&\text { Coppock }\\20 \text { residents total }&20 \text { resilents total }\\10 \text { residents earn } \$ 100,000 \text { each }&10 \text { resilents eamn } \$ 75,000 \text { each }\\10 \text { residents earn } \$ 10,000 \text { each }&10 \text { resilents eamn } \$ 25,000 \text { each }\\\end{array}$

-What is the degree of income inequality in Mateer?

• A) 0.1
• B) 1
• C) 10
• D) 100
• E) 1,000

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Definitions:

Tax

A requisite fiscal demand or variant levy put on a taxpayer by a political organization to underwrite government expenditure and sundry public disbursements.

Consumption

The purchasing and use of goods and services by households.

Units

Basic quantities or measurements, such as items sold or produced, used for analysis or calculation in various contexts.

Unit Elastic

A scenario in demand or supply where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.