Imagine an economy of 10 individuals. Their annual incomes are reported below. Imagine that $100 of Oprah’s income is transferred to Anna. What is true?

Name	Income	Name	Income
John	$1000	Bob	$300
Kitty	$800	Salman	$700
Walter	$200	Dora	$600
Steve	$500	Anna	$100
Samuel	$800	Oprah	$900

The poorest 40% of the population’s income share grows from about 58% to about 59.3%.

The richest 20% of the population’s income share falls from about 59.3% to about 57.6%.

The poorest 20% of the population’s income share grows from about 5.0% to about 6.8%.

The richest 40% of the population’s income share grows from about 58% to about 59.3%.

Answer rating: 100% (QA)

The correct answer is The poorest 40 of the populations income share grows from about 58 to about 59... View the full answer