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 income is more equal in the United States.
d) The distribution of income is more equal in Japan.
Homework Answers
A lower ratio of income of richest 10% to income of poorest 10% indicates higher equality. This is lower in case of Japan.
So, correct option is
d) The distribution of income is more equal in Japan.
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Lorenz Curve
The United Nations reports data on income distribution for
different countries as a ratio...
QUESTION 1 Between 1774 and 1973, the distribution of wealth in the United States became more...
QUESTION 1 Between 1774 and 1973, the distribution of wealth in the United States became more equal as measured by the Gini coefficient slightly more unequal as measured by the Gini coefficient perfectly unequal perfectly equal QUESTION 2 When the Gini coefficient increases, income inequality increases income equality increases the slope of the Lorenz curve increases everyone is made better off QUESTION 3 An income distribution becomes more unequal as the Lorenz curve moves toward the bottom right corner of...
3. The Gini Index Problem How is possible to measure the distribution of income among the inhabit...
3. The Gini Index Problem How is possible to measure the distribution of income among the inhabitants of a given country One such measure is the Gini index, named after the Italian economist Corrado Gini, who first devised it in 1912. We first rank all households in a country by income and then we compute the percentage of households whose income is at most a given percentage of the country's total income. We define a Lorenz Curve y L(x) on...
Suppose the Lorenz curve for the distribution of income of a certain country is given by...
Suppose the Lorenz curve for the distribution of income of a certain country is given by the equation shown below. y = xe8x - 8 Find the Gini coefficient of income. (Round your answer to three decimal places.) Need Help? Read It Talk to a Tutor
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...
1) Figure 2 below is an image of a Lorenz curve.
1) Figure 2 below is an image of a Lorenz curve. a. When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? 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? 2) (10) Describe the inequality in income and wealth between countries, and explain whether each has grown or shrank over the past 50 years. Why...
3. In the real world, we do not usually have nice formulas for the Lorenz Function. Instead, we have a bunch of data points. The following table describes the wealth distribution in the United States...
3. In the real world, we do not usually have nice formulas for the Lorenz Function. Instead, we have a bunch of data points. The following table describes the wealth distribution in the United States in 2016.1 0 0.20.4 0.6 0.8 0.9 0.95 0.99 1 L(p) || 0 -0.008 -0.005 0.019 | 0.101 0.212 0.333 | 0.604 (a) Using the table above, determine what percentage of the wealth in the United States was owned by the richest 1% of the...
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...
PART A In the United States, the gap between the higher-income groups and the lower-income groups,...
PART A In the United States, the gap between the higher-income groups and the lower-income groups, as a percentage of what they earn relative to the country's total earnings, has widened the past several decades. Therefore, we can conclude that: The relative gap between the richest 20% of our income earners and the poorest 20% of our income earners has narrowed. the richest 20% of our income earners has gotten poorer and the poorest 20% of our income earners has...
Mars has an income distribution that can be modeled by the Lorenz Curve L(x)=x2.75 a. What...
Mars has an income distribution that can be modeled by the Lorenz Curve L(x)=x2.75 a. What percent of the wealth do the poorest 35% of Martians control? Round your answer to 2 decimal places b.What is Mars's Gini Index? Round your answer to 2 decimal places.
QUESTION 1 Between 1774 and 1973, the distribution of wealth in the United States became more equal as measured by the Gini coefficient slightly more unequal as measured by the Gini coefficient perfectly unequal perfectly equal QUESTION 2 When the Gini coefficient increases, income inequality increases income equality increases the slope of the Lorenz curve increases everyone is made better off QUESTION 3 An income distribution becomes more unequal as the Lorenz curve moves toward the bottom right corner of...
3. The Gini Index Problem How is possible to measure the distribution of income among the inhabitants of a given country One such measure is the Gini index, named after the Italian economist Corrado Gini, who first devised it in 1912. We first rank all households in a country by income and then we compute the percentage of households whose income is at most a given percentage of the country's total income. We define a Lorenz Curve y L(x) on...
Suppose the Lorenz curve for the distribution of income of a certain country is given by the equation shown below. y = xe8x - 8 Find the Gini coefficient of income. (Round your answer to three decimal places.) Need Help? Read It Talk to a Tutor
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...
3. In the real world, we do not usually have nice formulas for the Lorenz Function. Instead, we have a bunch of data points. The following table describes the wealth distribution in the United States in 2016.1 0 0.20.4 0.6 0.8 0.9 0.95 0.99 1 L(p) || 0 -0.008 -0.005 0.019 | 0.101 0.212 0.333 | 0.604 (a) Using the table above, determine what percentage of the wealth in the United States was owned by the richest 1% of the...
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...
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