1. Use Table 2 from Chapter 20 in your text to answer this question.

a. In the most recent year available, what percent of income did the bottom fifth of the income distribution carn? What percent of income did the top fifth of the distribution carn? Roughly, what is the relationship between what the bottom fifth earns and what the top fifth earns? CHAPTER 20 INCOME INEQUALITY AND POVERTY

b. What is the range of the percent of income earned by the bottom fifth of the income distribution over the last 70 years? What is the range for the top fifth? Describe the trend for each group over the last 70 years. Provide some expla- nations for the trends you described. C. Describe three reasons why the measure of income distribution expressed in Table 2 in Chapter 20 may not truly measure someone's ability to maintain a certain standard of living. As a result, are the standard measures of income distribution likely to exaggerate or understate the true distribution of the standard of living? Explain.