1. Study Questions and Problems #1The following table contains data on the distribution of income in the countries of France and Canada.Compute the cumulative distribution of income for each country to complete the table.Percentage ofFrance PercentageFrance CumulativeShareFamiliesShareLowest fifth17.7Second-lowest fifth19.9Middle fifth20.4Second-highest fifth20.7Highest fifth21.3Canada PercentageCanada CumulativeShareShare914.217.521.937.4Using data from the previous table, construct the Lorenz curve for each country on the following graph. The black line shows perfect equality. Use theblue points (circle symbol) to construct the Lorenz curve for France starting at (0,0) and use the orange points (square symbol) to construct theLorenz curve for Canada starting at (0, 0). Line segments will automatically connect the points.CUMULATIVE PERCENTAGE OF MONEY INCOME20100Perfect Equality LineFrance20406080100CUMULATIVE PERCENTAGE OF FAMILIES----CanadaTrue of False: Of the two countries, Canada has a lower income inequality than France.TrueFalse

The Lorenz curves for France and Canada have been plotted. As you can see, the curve for Canada…

Answered: 1. Study Questions and Problems #1 The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If an economy's income is completely equally distributed, then the value of its Gini coefficient is income is completely unequally distributed, then the value of its Gini coefficient is 0; infinity 0; 1 1;0 infinity ; 0 If an economy's Suppose the Gini coefficient in Canada is 0.05, and the Gini coefficient in the United States is 0.42. Which country's income distribution is more evenly distributed? Canada Canada and the United States have the same income distribution. the United States More information is needed to answer this question.
Suppose the income share of the population by quintile is the following: Income Share (percent) Quintile 1 4.5 Quintile 2 14.7 Quintile 3 19.8 Quintile 4 24.0 Quintile 5 37.0 What is the Gini coefficient? Round your answer to the nearest second decimal.
38
The graph shows a Lorenz curve for an economy with a total income of 30000; Share of Income a 40% 60% 80% 100% A B C D E 20% suppose that A=100%, b=48%, c=23%, D=9% and E=2% What is the income share of each quintile in percentage? (enter the numbers with % sign, such as 5%) Quintile 1 (poorest quintile) = type your answer... type your answer... type your answer... Percentile Quintile 2 = Quintile 3 = Quintile 4=
Differentiate size distribution and functional distribution of income.
Suppose there are 3 households in each society. This table shows income for poor, middle, and rich household, average income for all households, and the Gini coefficient for 4 societies. Based on this table, which of the following is true? (Select all that apply.) Society A Society B Society C Society D оооо Household Income Poor Middle Household Household 20,000 15,000 25,000 30,000 40,000 40,000 40,000 40,000 Rich Household 75,000 100,000 200,000 10,000,000 Society D has the most unequal income distribution. Society A has the most equal income distribution. Society D has the highest overall average income. Society A has the lowest overall average income. Average Income 45,000 51,667 88,333 3,356,667 Gini coefficient .27 .37 .44 .66
1. Working with Numbers and Graphs Q1 The following table shows the income distribution of an economy. Quintile Lowest fifth Second fifth Third fifth Fourth fifth Highest fifth Income Share (Percent) 18 19 20 21 22
Answer the question below
The table shows the distribution of income in the Australia Complete the column of the table that records the cumulative percentages of income in Australia received by the cumulative percentages of households. Cumulative percentage of Income Households Lowest 20 percent (percentage) Households Income 8 Lowest 20 13 Lowest 40 Second 20 percent Third 20 percent 18 Fourth 20 percent 23 Highest 20 percent 38 Lowest 60 Lowest 80 100 100.0 The graph shows the Lorenz curve for the United States Draw the line of equality Draw a point to show the cumulative percentage of income received by the lowest 40 percent of Australian households Label it 1, Draw a point to show the cumulative percentage of income received by the lowest 80 percent of Australian households. Label it 2 Draw the Lorenz curve for Australia. Label it Based on the data provided, which country has the more unequal income distribution? OA Australa OB. Neither. They have the same degree of inequality. OC, The United States OD. It…
table 1 shows that region IV A or Calabar Zone has the greatest population compared to other regions in the Philippines. What factor contributes to its increased population?
Explain 4 limitations that National Income Statistics have in determining a country's economic welfare
Q2] Given is the data for Country A and B: Population Fraction Country A's Income Country B's Income bottom 25% 5 million 10 million 2nd 25% 10 million 15 million 3rd 25% 30 million 20 million top 25% 55 million 55 million a) Compute the cumulative income share and neatly plot (using Excel) the Lorenz curve for these two countries with labels. Feel free to use excel template that I have uploaded and copy paste the plot. b) Compute the Gini coefficient assuming the region beneath the two respective Lorenz curve is For country A = 0.2875 For country B = 0.3250

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