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 calculate the poverty rate, we need to find out the percentage of the population living below the poverty line. In Inequalia, anyone earning less than $10,000 is considered to be living below the poverty line. According to the distribution of income given, the percentage of the population earning less than $10,000 is (10% + 17% + 27% = 54%). Therefore, the poverty rate in Inequalia is 54%, which is closest to choice C (27.8%).

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