A total of 5,000 people live in Acaville. There are 1,000 high school students, 1,000 undergraduate students, 1,000 graduate students, 1,000 economics professors, and 1,000 retired economists. Suppose that the total annual income in the economy is $100 million: each high school student makes $2,500 annually; each undergraduate makes $15,000 annually; each graduate student makes $25,000 annually; each professor makes $50,000 annually; and each retiree makes $7,500 annually.
What is the correct order of income distribution in Acaville?© BrainMass Inc. brainmass.com October 10, 2019, 4:45 am ad1c9bdddf
Given the annual income of five groups in Acaville, this solution gives the correct order of income distribution from the bottom fifth to the top fifth.