ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Landing in the top 10% is a fairly attainable goal for upwardly mobile Americans. A study by the Economic Policy Institute (EPI) found that the average earnings of those in the top 10% were roughly $173, 000 in 2020.

Detailed explanation-2: -In 2017, average household income before accounting for means-tested transfers and federal taxes was $21, 300 for the lowest quintile and $309, 400 for the highest quintile. After transfers and taxes, those averages were $35, 900 and $229, 700.

Detailed explanation-3: -A new job or profitable investment can propel a household from a lower quintile to a higher one over time; likewise, income loss can result in movement down the distributional ranks. Such movement throughout the income distribution over time is called income mobility.

Detailed explanation-4: -In the legend, quintiles are labeled as Lowest 0%-20% of Household Incomes; 21%-40% of Household Incomes; all the way to the Top 81%-100% of Household Incomes. They are essentially the lowest, second lowest, and top quintiles-needing the middle and second highest quintiles to make five.