Question: Using the data in Figure 2.3 , ( a ) Compute the average income of U.S. households. $ ( b ) If all incomes were

Using the data in Figure 2.3 ,

( a ) Compute the average income of U.S. households. $

( b ) If all incomes were equalized by government taxes and transfer payments, how much would the average household in each income quintile gain (via transfers) or lose (via taxes)?

( i ) Highest fifth $

( ii ) Second fifth $

( iii ) Third fifth $

( iv ) Fourth fifth $

( v ) Lowest fifth $

( c ) What is the implied tax rate (i.e., tax 4 average income) on the highest quintile? %

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