Norway Souh Africa The table shows the quintile shares of income in South Africa
ID: 1118839 • Letter: N
Question
Norway Souh Africa The table shows the quintile shares of income in South Africa and Norway Households (quintile) Lowest Second Third Fourth Highest (percentage of total income) 1. Make a table to show the cumulative percentage of income against the cumulative percentage of households in Norway 10 16 19 Households Income Cumulative Cumulative 16 68 percentage Percentage percentage 10 16 19 Quintile Lowest Second Third Fourth Highest 2. Is income in Norway distributed more equally or less equally than in South 10 20 40 60 80 100 100 Africa? Income in Norway is OA, less B. more equally distributed than South AfricaExplanation / Answer
Question 1
Following table shows the cumulative percentage of income against the cumulative percentage of households in Norway -
Households
Income
Quintiles
Cumulative percentage
Percentage
Cumulative percentage
Lowest
20
10
10
Second
40
16
(10+16) = 26
Third
60
19
(10+16+19) = 45
Fourth
80
22
(10+16+19+22) = 67
Highest
100
33
100
Question 2
In order to assess magnitude of income distribution in an economy, one must compare the share of total income accruing to lowest quintile and highest quintile. Larger the gap, less equally distributed the income.
If we analyze the given data then it can be seen that the gap between share of total income accruing to lowest quintile and the highest quintile is much lower in Norway than in South Africa.
So, income in Norway is more equally distributed than South Africa.
The correct answer is the option (B).
Households
Income
Quintiles
Cumulative percentage
Percentage
Cumulative percentage
Lowest
20
10
10
Second
40
16
(10+16) = 26
Third
60
19
(10+16+19) = 45
Fourth
80
22
(10+16+19+22) = 67
Highest
100
33
100
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