This integrated reasoning - graphical interpretation question involves a pie chart. It may seem a little confusing at first because of the multiple percent signs. But note that the references to "top 1%" and "bottom 10%" are referring to the percentiles of Americans ranked by total networth.
So imagine everyone in America is ranked by their networth. Each specific person has a particular net worth. Likewise, each percentile range has an aggregate net worth.
The pie chart shows the top 1 percentile of Americans who are ranked by their net worth control 42% of the overall wealth. If the world were a completely equal world, then one might say that each 1 percentile of Americans should control its fair share of 1% of the overall wealth. That would allow for the remaining 99 percent of Americans to control their fair share of the remaining 99% of the overall wealth.
But the real world is quite different and the graph illustrates this. If 42% of the nation's wealth is controlled by the top 1 percentile of Americans, then that leaves only 58% of the remaining wealth to be controlled by the remaining 99 percent of Americans.
What More Can This GMAT Pie Chart Tell Us?
Well, notice this pie chart labels the other "slices of the pie" as "next 4%" and "next 5%" and so on.
What does it mean to say the "next 4 %" ???
Well, if you combine the top 1% and the next 4% - which means you combine the burgundy red portion and the bluish-purple portion, then you are looking at the combined top 5% of Americans. These top 5% of Americans control the aggregate wealth of 28% + 42% = 70% of the nation's wealth.
In other words, 70% of the nation's wealth in dollar terms is controlled by the top 5 percentile in net worth rankings. The leaves the remaining 95% of Americans with just 30% of the wealth.
Clearly, the wealth distribution is not equal
So effectively, this chart shows the dollar amount of wealth distribution between the Americans ranked by their net worth.
source: GMAT Pill - %ile pie chart
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