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In: Economics

Data from the National Longitudinal Mortality Survey indicates that among adult males, when income doubles, five-year...

Data from the National Longitudinal Mortality Survey indicates that among adult males, when income doubles, five-year mortality rates fall by 25 percent. Suppose five-year mortality rates among those with $10,000 in income is about two percent. Given the information above, what are mortality rates among those with $20,000 in income?

a. 0.5%

b. 1.25%

c. 1.5%

d. none of these

Solutions

Expert Solution

The answer to this question is:

c. 1.5%

Reason: The income doubles from $10,000 to $20,000. In the question when the income doubles the five-year mortality rates fall by 25 percent. The five-year mortality rates among those with $10,000 in income is about two percent. Therefore this will fall by 25% which is 0.5%. Therefore final answer is 2% -0.5% = 1.5%

Rahul Sunny answered 2 years ago
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