(Solved): The following table summarizes the income distribution for the town of Perkopia, which has a popul ...

The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is \( \$ 500,000,000 \). Suppose that in 2016 , the poverty income threshold, or poverty line, is set at an annual income of \( \$ 43,275 \) for an individual. The data in the table suggest that there was income inequality from 2006 to 2020. Complete the following table to help you determine the poverty line in Perkopia in 2016. To do this, begin by determining the total income of all individuals in each quintile, using the fact that total annual income in the economy is \( \$ 500,000,000 \). Next, determine the income of andividin each quintile by dividing the total income of that quintile by the number of people in that quintile. (Hint: Recall that perkopia has a population of 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of \( \$ 43,275 \) Using the information in the previous table, the fraction of the total population living below the poverty line of \( \$ 43,275 \) in Perkopia in 2016 is Suppose that the government introduces a welfare program in which any individual with an income of less than \( \$ 43,275 \) per year receives a lump-sum transfer payment of \( \$ 7,000 \) from the government. Assume that, in the short run, there is no change in labor-supply behavior among the people in Perkopia. In the year 2016 , the fraction of the population living below the poverty line after the introduction of the welfare program in Perkopia is Again, suppose the government introduces a welfare program in which any individual with an income of less than \( \$ 43,275 \) receives a lump-sum transfer payment of \( \$ 7,000 \) from the government. Gilberto, a resident of Perkopia who currently earns an income of \( \$ 42,474 \), has the opportunity to work overtime and earn an additional \( \$ 1,500 \) this year. Which of the following statements are correct? Check all that apply. Gilberto would gain more income by turning down the overtime than he would if he accepted the overtime. The \( \$ 7,000 \) in aid presents a disincentive for Gilberto to make more than \( \$ 43,275 \) per year. Gilberto may accept the overtime if he feels that taking it will increase the chances of his receiving a significant promotion.