In 2012, the top 5 percent of households in the United States received more than 20 percent of all income-an amount greater than that received by the bottom __________ of all households.

Question

Quizplus · Accepted Answer

According to the statement, the top 5 percent of households received more than 20 percent of all income. This leaves 80 percent of the income for the other 95 percent of households. To determine the income received by the bottom X percent of households, we need to find the percentage of households that make up 80 percent of the income. If we subtract the top 5 percent from the total, we get 95 percent. If the top 5 percent received more than 20 percent of all income, then the bottom 95 percent received less than 80 percent of all income. Dividing 80 by 0.95 gives us approximately 84.21 percent. Subtracting this from 100 gives us 15.79 percent, which is the income received by the bottom 15.79 percent of households. The answer closest to this value is B, 40 percent.

In 2012, the Top 5 Percent of Households in the United