Question

In country 'x', income is distributed as follows: poorest 25% earn 3% of the total income, followed by 12% for the poorest 50%, and 30% for the poorest 75%. Determine the percentage of the total income earned by the richest 25%.

Options:
a) 85%
b) 82%
c) 15%
d) 18%

Answer 1

The richest 25% of country 'x' earn 70% of the total income, which is not one of the provided options. The given options seem to have a mistake as none of them match the correct calculation.

Step-by-step explanation:

To determine the percentage of the total income earned by the richest 25% in country 'x', we can analyze the given income distribution data. The data tells us the following: the poorest 25% earn 3% of the total income, the poorest 50% earn 12% of the total income, and the poorest 75% earn 30% of the total income. To find the share for the richest 25%, we need to understand that the sum of the income shares for all quarters of the population should be 100% since they represent the entire population. Given that the poorest 75% earn 30% of the income, we can subtract this from 100% to find the income share of the richest 25%.

100% - 30% = 70%

Therefore, the richest 25% earn 70% of the total income. This is not one of the options provided, indicating there may have been a mistake in the options given or in the question itself. The correct answer based on the given data is 70% and not any of the options provided (85%, 82%, 15%, 18%).