The poverty line in the country of Inequalia is $10,000.The distribution of income for Inequalia is as follows: The poverty rate in Inequalia is

Question

The poverty line in the country of Inequalia is $10,000.The distribution of income for Inequalia is as follows:  The poverty rate in Inequalia is

Quizplus · Accepted Answer

To find the poverty rate, we need to determine the percentage of the population that falls below the poverty line. Looking at the income distribution, we can see that 50 percent of the population earns less than $10,000 (since the cumulative percentage at the $10,000 income level is 50%). Therefore, the poverty rate in Inequalia is 50% of the population earning less than $10,000, which is 27.8 percent (since 50% of the population is earning less than the poverty line, and 50% is earning more). Thus, the answer is C.

The Poverty Line in the Country of Inequalia Is $10,000