Homework Answers
Option B
In a Lorenz curve, the 45 degree middle line represents the perfect equality of distribution of wealth or income. Farther the Lorenz curve from the middle 45 degree line more would be inequality of distribution of wealth.
Hence, Surf Island represents more equality in distribution of wealth as it is closer to 45 degree line.
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The figure below is a Lorenz Curve that shows the cumulative percent of income earned by...
You learned that a Lorenz Curve shows the cumulative share of population on the horizontal axis...
You learned that a Lorenz Curve shows the cumulative share of
population on the horizontal axis and the cumulative percentage of
total income received on the vertical axis. Based on the figure
below answer the following:
a) What the perfect equality line means?
b) What do 1980 and 2011 Lorenz Curves tell us regarding the
evolution of the US income distribution? JUSTIFY your answer!
100% 80% Perfect equality 60% Cumulative Share of Income 40% 1980 20% 2011 0 0 100...
2. Constructing a Lorenz curve from income shares data
2. Constructing a Lorenz curve from income shares dataThe following table shows the approximate income distribution for Nicaragua, Haiti, and Croatia in 2013. In particular, it shows the income shares of each quintile of the income distribution.Income GroupPercentage of Total Income, 2013Nicaragua Haiti Croatia Lowest quintile628Second quintile10613Third quintile141017Fourth quintile211822Highest quintile496440 Haiti has the most total income.On the following graph, plot the Lorenz curves for the three countries. Plot Nicaragua's Lorenz curve using the green points (triangle symbol), Haiti's Lorenz curve using the blue points...
Lorenz Curve 2) The graph below shows the Lorenz Curve. 60% 50% 10% 0% 20% 30%...
Lorenz Curve
2) The graph below shows the Lorenz Curve. 60% 50% 10% 0% 20% 30% 50% 60% 70% 100% a) Label both axes right in the graph (type it in the given text boxes). b) Label both curves right in the graph. (type it in the given text boxes) c) Which area in the graph shows the degree of income inequality in this country? You Answer: (2 points) (2 points) can either shade it right in the graph or...
QUESTION 12 Cumulative percentage of income or wealth Line of quality Wealth 0 20 40 60...
QUESTION 12 Cumulative percentage of income or wealth Line of quality Wealth 0 20 40 60 80 100 Cumulative percentage of households The figure above shows Lorenz curves for a nation. Based on the figure above, if the poorest 20 percent group of households increased the share of the nation's income they receive, then there is a movement up along the Lorenz curve for income. there is a movement down along the Lorenz curve for income the Lorenz curve for...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? b. (6) Explain how to use the information in Figure 2 to calculate the Gini coefficient 1. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Perfect Equality Line Percentage of income Lorenz Curve 100 Percentage of Population Figure 2 2) (10) Describe...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? b. (6) Explain how to use the information in Figure 2 to calculate the Gini coefficient. i. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Perfect Equality Line Percentage of Income Lorenz Curve 100 Percentage of Population Figure 2 2) (10) Describe...
Lorenz Curve The United Nations reports data on income distribution for different countries as a ratio...
Lorenz Curve The United Nations reports data on income distribution for different countries as a ratio of the income of the richest 10% to the income of the poorest 10%. If the ratio for Japan is 4.5 and the ratio for the United States is 15.9, which of the following statements is correct? a) This ratio is the slope of the Lorenz curve for each country. b) This is the same thing as the Gini coefficient. c) The distribution of...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? I i. What does a high number indicate? b. (Explain how to use the information in Figure 2 to calculate the Gini coefficient. i. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Perfect Equality Line Percentage of Income Lorenz Curve 0 100...
The function of a Lorenz curve is to O A. illustrate the relative effect of inflation on each group of income recipients OB. show the ideal distribution of income in a country. C. plot the relati...
The function of a Lorenz curve is to O A. illustrate the relative effect of inflation on each group of income recipients OB. show the ideal distribution of income in a country. C. plot the relationship between the cumulative percentage of households receiving income and the cumulative percentage of household income. D. provide a locus of all points for which a given percentage of households receives exactly that cumulative percentage of income.
The function of a Lorenz curve is to...
The table below shows the annual incomes of the only residents of two countries A and...
The table below shows the annual incomes of the only residents of two countries A and B. Draw each country's Lorenz curve and determine which country has a more unequal income distribution. 8. Person Incomes in Country A (S)20 25 1000 30 50 40 50 2000 60 100
You learned that a Lorenz Curve shows the cumulative share of
population on the horizontal axis and the cumulative percentage of
total income received on the vertical axis. Based on the figure
below answer the following:
a) What the perfect equality line means?
b) What do 1980 and 2011 Lorenz Curves tell us regarding the
evolution of the US income distribution? JUSTIFY your answer!
100% 80% Perfect equality 60% Cumulative Share of Income 40% 1980 20% 2011 0 0 100...
Lorenz Curve
2) The graph below shows the Lorenz Curve. 60% 50% 10% 0% 20% 30% 50% 60% 70% 100% a) Label both axes right in the graph (type it in the given text boxes). b) Label both curves right in the graph. (type it in the given text boxes) c) Which area in the graph shows the degree of income inequality in this country? You Answer: (2 points) (2 points) can either shade it right in the graph or...
QUESTION 12 Cumulative percentage of income or wealth Line of quality Wealth 0 20 40 60 80 100 Cumulative percentage of households The figure above shows Lorenz curves for a nation. Based on the figure above, if the poorest 20 percent group of households increased the share of the nation's income they receive, then there is a movement up along the Lorenz curve for income. there is a movement down along the Lorenz curve for income the Lorenz curve for...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? b. (6) Explain how to use the information in Figure 2 to calculate the Gini coefficient 1. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Perfect Equality Line Percentage of income Lorenz Curve 100 Percentage of Population Figure 2 2) (10) Describe...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? b. (6) Explain how to use the information in Figure 2 to calculate the Gini coefficient. i. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Perfect Equality Line Percentage of Income Lorenz Curve 100 Percentage of Population Figure 2 2) (10) Describe...
1) Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? I i. What does a high number indicate? b. (Explain how to use the information in Figure 2 to calculate the Gini coefficient. i. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Perfect Equality Line Percentage of Income Lorenz Curve 0 100...
The function of a Lorenz curve is to O A. illustrate the relative effect of inflation on each group of income recipients OB. show the ideal distribution of income in a country. C. plot the relationship between the cumulative percentage of households receiving income and the cumulative percentage of household income. D. provide a locus of all points for which a given percentage of households receives exactly that cumulative percentage of income.
The function of a Lorenz curve is to...
The table below shows the annual incomes of the only residents of two countries A and B. Draw each country's Lorenz curve and determine which country has a more unequal income distribution. 8. Person Incomes in Country A (S)20 25 1000 30 50 40 50 2000 60 100
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