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BMAT 2010 · Question 33 · Ratio/Proportion/Percentage

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Vitelo Pareto observed that in Italy in 1906 that 80% of the wealth was owned by 20% of the people. The 'Pareto Principle' has since been applied to a wide range of other areas. For example in the USA it has been found that 20% of the population use 80% of the health care resources. Although most developed countries have a somewhat more even distribution of wealth in modern times, on a global scale it has been estimated that currently 20% of the world's population have 82.7% of the world's income. Various parameters are used to give a measure of inequality of income within a society. One of the simplest of these is the ratio of the average income of the best paid 20% of the population to that of the lowest paid 20%. Among countries this ratio varies from 4.5 for Japan to 168 for Bolivia. It is clearly very high for some developing countries because a significant part of the population has no measurable income at all. In the fictional country of Capitalia, the income distribution is as follows: Average annual income The bottom 10% earn $16,203 The next 10% earn $17,338 The next 10% earn $18,710 The next 10% earn $20,415 The next 10% earn $22,604 The next 10% earn $25,552 The next 10% earn $29,806 The next 10% earn $36,687 The next 10% earn $50,656 The top 10% earn $162,029 Overall $40,000

In Capitalia, what percentage of income is earned by the richest 10%?