opportunity sets, both for before this welfare program is enacted and after it is enacted.

4. We have discovered that the welfare system discourages recipients from working because the more

income they earn, the less welfare benefits they receive. How does the earned income tax credit attempt to

loosen the poverty trap?

5. How does the TANF attempt to loosen the poverty trap?

6. A group of 10 people have the following annual incomes: $24,000, $18,000, $50,000, $100,000, $12,000,

$36,000, $80,000, $10,000, $24,000, $16,000. Calculate the share of total income that each quintile

receives from this income distribution. Do the top and bottom quintiles in this distribution have a greater

or larger share of total income than the top and bottom quintiles of the U.S. income distribution?

Access for free at openstax.org
7. Table 15.9 shows the share of income going to each quintile of the income distribution for the United
{"upload_timestamp": "2026-02-07T15:37:44.339247", "file_hash": "830b81f41611ac67a490444dbb5d6aed292224606965b06965b914443c93331a", "batch_upload": true, "moddate": "2022-12-07T14:23:05-06:00", "total_pages": 597, "file_name": "Microeconomics3e.pdf", "uploaded_via": "batch_uploader", "file_size_mb": 26.99, "source_file": "downloads\\business\\economics\\Microeconomics3e.pdf", "creationdate": "2022-12-07T14:15:44-06:00", "producer": "Prince 14.2 (www.princexml.com)", "creator": "PDFMiner", "title": "Principles of Microeconomics 3e", "source": "downloads\\business\\economics\\Microeconomics3e.pdf", "file_type": ".pdf"}