Complete the following table to help you determine the poverty rate in Perkopia in 2013. To do this, begin by determining the total income of all individuals in each quintile, using the fact that the total annual income in the economy is $500,000,000. Next, determine the income of an individual in each quintile by dividing the total income of that quintile by the number of people in that quintile. (Hint: Recall that Perkopia has a population of 10,000 people.) Finally, determine whether the individual income for each quintile falls below the poverty income threshold, or poverty line, of $42,050.

Quintile	Share of Income in 2000	Total Income	Individual Income	Below the Poverty Line?
	(Percent)	(Dollars)	(Dollars)
Lowest	3.3
Second	9.0
Middle	14.6
Fourth	22.0
Highest	51.1

Using the information in the previous table, the poverty rate in Perkopia in 2013 is.

Suppose that the government introduces a welfare program in which any individual with an income of less than $42,050 per year receives a lump-sum transfer payment of $8,000 from the government. Assume that, in the short run, there is no change in labor-supply behavior among the people in Perkopia.

In the year 2013, the poverty rate after the introduction of the welfare program in Perkopia is.

Again, suppose the government introduces a welfare program in which any individual with an income of less than $42,050 receives a lump-sum transfer payment of $8,000 from the government. Felix, a resident of Perkopia who currently earns an income of $12,199, has the opportunity to work overtime and earn an additional $1,500 this year.

Which of the following statements are correct? Check all that apply.

Felix would gain more income by turning down the overtime than he would if he accepted the overtime.

Felix may accept the overtime if he feels that taking it will increase the chances of his receiving a significant promotion.

The $8,000 in aid presents a disincentive for Felix to make more than $42,050 per year.