The distribution of income for Grim is as follows:

Where would the government in Grim set the poverty line to establish a poverty rate of 50 percent?

Question

The distribution of income for Grim is as follows:

Where would the government in Grim set the poverty line to establish a poverty rate of 50 percent?

Quizplus · Accepted Answer

To establish a poverty rate of 50 percent, the government in Grim would need to set the poverty line at the income level where exactly half of the population falls below it. Looking at the income distribution table provided, we can see that the income level at which exactly half of the population falls below it is at $10,000. At this income level, the cumulative percentage of the population is 50%. Therefore, the government in Grim would set the poverty line at $10,000 to establish a poverty rate of 50 percent.

The Distribution of Income for Grim Is as Follows