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1) Imagine an economy of 10 individuals. Their annual incomes are reported below

ID: 1194812 • Letter: 1

Question

1) Imagine an economy of 10 individuals. Their annual incomes are reported below. Approximately what percentage of this economy’s income is held by the poorest 40% of the population?

18.6

39.9

13.6

2) Which of the following will NOT result in a leftward shift of the market demand curve for labor?

An increase in immigration.

A decrease in labor productivity.

An increase in the wage rate.

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

Explanation / Answer

a)poorest 40% would include ANNA, WALTER, BOB AND STEVE

So their share in economy is 1100/5900.

b) An increase in immigration is surely not a result for leftward shift of the market demand curve for labor because this is cause which leads demand curve shift in.