Table 20-5
Distribution of Income in Umakastan
-Refer to Table 20-5. Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?
A)$20,000
B)$34,690
C)$38,000
D)$56,000

Question

Table 20-5
Distribution of Income in Umakastan 
-Refer to Table 20-5. Where would the government of Umakastan have to set the poverty line to have a poverty rate of about 28%?
A)$20,000 
B)$34,690 
C)$38,000 
D)$56,000

Quizplus · Accepted Answer

Looking at the table, we can see that the bottom 28% of the population would correspond to those with incomes below the 3rd decile (30th percentile), which is $38,000. Therefore, the poverty line would have to be set at or below $38,000 to achieve a poverty rate of about 28%.

Table 20-5 Distribution of Income in Umakastan