10) What does a Lorenz curve show? Show a Lorenz curve for a country like the USA where there is a difference between income of the population.
Q: There are three agents, a, b, and c. Person a receives $500 in income, b receives $400, and c gets…
A: Lorenz curve: It refers to the curve under which income inequality can be shown. The graph shows the…
Q: of mcome On the Lorenz curve, all of the following are true except: 100% 50% % of families 100% Line…
A: The Lorenz curve is a graphical representation of the distribution of income or distribution of…
Q: The table below shows the share of income going to each quintile of the income distribution for a…
A: Introduction: The Lorenz curve is a graph that depicts economic inequity and income distribution.…
Q: Figure 18-7 100 Income (cumulative percent) 80 818 99882 72 60 48 40 20 12 0 20 40 60 80 Households…
A: Lorenz curve highlights the distribution of income and wealth within the economy. The gap between…
Q: When the Lorenz curve lies above thediagonal,a. the poorest 20 percent of the populationreceive more…
A: Lorenz curve is the curve which shows inequality in the economy, it could be income inequality or…
Q: 1. If an economy has perfect income equality, explicitly describe what that economy's Lorenz Curve…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: The ratio of income to poverty is a measure of the depth of poverty. O True O False
A: Since you have posted multiple questions as per guidelines we can solve the only first question at a…
Q: Figure 18-7 100 Income (cumulative percent) 80 72 60 48 40 28 20 12 0 20 40 60 80 Households…
A: Lorenz curve highlights the distribution of income and wealth within the economy. The gap between…
Q: 1. How does the population of a low-income country such as Ethiopia differ from that of a…
A: Developed country: In developed country infrastructure facility is very good , their per capita is…
Q: The table shows after-tax income shares in Canada in 1986 and 2015. After-tax income After-tax…
A: Income inequality refers to the situation where income throughout a state or country is distributed…
Q: The term obtained by dividing the area of inequality shown by a Lorenz curve by the area of the…
A: Gini Coefficient It is the area below the line of perfect equality minus the area below the Lorenz…
Q: 2. Constructing a Lorenz curve from income shares data The following table shows the approximate…
A: This can be defined as a graphical representation used in economics to illustrate income or wealth…
Q: Step on how to solve on Excel. In a certain country, the population consists of five blue people…
A: The Lorenz curve, created by American economist Max Lorenz in 1905, is a graphical representation of…
Q: Using the Lorenz Curve, answer the following questions. . . Approximately what percentage of the…
A: A Lorenz curve shows the spread of distribution. It is used to show inequality of distribution. The…
Q: Which of these is true about the Lorenz curve? a. allows us to rank all countries by the degree of…
A: In economics, there are different concepts used to explain or show the nature of economic variables,…
Q: Economists experience difficulties in accurately measuring income inequality because of which of the…
A: Income inequality means the degree to which income is distributed unequally throughout a…
Q: Below is a Lorenz Curve for a given country. Suppose its government establishes a 10% income tax on…
A: A Lorenz curve is a graphical representation of a community's income or wealth distribution.Lorenz…
Q: Assume that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50,…
A: Lorenz curve is that curve that shows the distribution of wealth or income with the population in…
Q: The table below shows the share of income going to each quintile of the income distribution for a…
A: The graphical depiction of the income distribution is known as the Lorenz curve. The cumulative…
Q: There are three agents, a, b, and c. Person a receives $500 in income, b receives $400, and c gets…
A: Gini coefficient: It refer to the curve under which the actual difference can be measured to know…
Q: suppose that A=100%, b=48%, c=23%, D=9% and E=2% How much income is earned by each quintile? (Just…
A: The Lorenz curve is a graphical representation of income or wealth distribution within a population.…
Q: The table below shows the share of income going to each quintile of the income distribution for a…
A: Income distribution refers to the ease or equality with which income is distributed among members of…
Q: Copynight © T he McGraw-Hill Companies, Inc. PermisSion required for reproduction or display. OB 0.8…
A:
Q: Which of the following is not a true statement about the Lorenz curve? A. The Lorenz curve…
A: Lorenz Curve:Lorenz Curve is the graphical illustration of the income distribution in an economy…
Q: 1. Below are cumulative income share data for Colombia and Indonesia in 2019 Population Quintile…
A: The distribution of income or wealth is represented by Lorenz curve. It is generally used to see…
Q: The total income generated from all activities b. The degree of inequality in the distribution of…
A: Lorenze curve is the graph that showing percentage of country's income that is earn by a given…
Q: Draw the Lorenz curve for the United Kingdom. Draw a point to show the percentage of income received…
A: The income for lowest 40% of the households in the UK is 10 and the lowest 80% of the UK population…
Q: The table below shows the share of income going to each quintile of the income distribution for a…
A: A Lorenz curve was established by American economist Max Lorenz in 1905 as a graphical…
Q: What are the Gini Coefficient and the Lorenz Curve? Be sure to explain how these terms are related…
A: Both of these are used to measure inequality associated with income/wealth. Gini coefficient/index…
Q: Which of the following statements is correct?
A: A Lorenz curve is a graphical representation of the distribution of income or wealth within a…
Q: ollowing diagram shows the Lorenz curves for three countries. Country X's Lorenz curve is shown in…
A: The ginni coefficient measures the wealth or income inequality. The zero value of ginni coefficient…
Q: 1. Below is a hypothetical breakdown of the income distribution in a country. Use those calculate…
A:
Q: Explain how a Lorenz curve is used to describe income inequality.
A: A Lorenz curve could be a graphical representation of income inequality or wealth inequality. The…
Q: line represents 2010. Share of income received 1960 2010 Bottom 20% 10% 5% Bottom 40% 30% 10% Bottom…
A: In economic aspects, the Lorenz bend is a graphical portrayal of the circulation of pay or of…
Q: The table shows the income shares in the United States and the United Kingdom. Draw the U.K.…
A: Lorenz curve is the concept given by Max Lorenz that shows the inequality of income or wealth among…
Q: Percent of Percent of income income Beta Household percentage Lowest 20 percent Second 20 percent…
A: In an economy, Lorenz curve refers to line that shows the income inequality among the people of a…
Q: n economy's Lorenz Curve reveals that an economy's highest income quintile has 65% of the economy's…
A: A Lorenz curve is a graph that shows how wealth or income are distributed across a population.…
Q: 4. An economist produced the following Lorenz curves for the current income distribution and the…
A: Lorenz curve is used to depict the distribution of income amongst the recipients in the form of a…
Q: The $1.4 billion trick to make us accept income inequality Lotteries take money from the poor and…
A: Income Inequality is dеfinеd as thе unеqual distribution of incomе in an еconomy. It is thе…
Q: Which statements are TRUE? A. Modern sector enlargement assures a better Lorenz Curve for a…
A: The concept of income inequality discusses how income is distributed among different sections of…
Q: Lotteries result in the distribution of income
A: Income Inequality is defined as the unequal distribution of income in an economy. It is the…
![10) What does a Lorenz curve show? Show a Lorenz
curve for a country like the USA where there is a
difference between income of the population.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7a9dd458-8edc-4694-ad23-54098d9adb38%2F157d0323-3ab7-484c-8f9a-650e88585cc1%2F1zzgv8i_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- The closer the Lorenz curve for income is to the line of equality, the larger is the nation's total income. the smaller is the nation's total income. the more equally are incomes distributed. the larger the fraction of the nation's income received by the richest families.Which of these is true of the Lorenz curve? The further away it is from the 45 degree line the more unequal is distribution. The closer it is to the 45 degree line the more unequal is distribution.The tables show the (approximate) distributions of money income in the United States and Canada United States Cumulative percentage of Households Income Lowest 40 Lowest BO 12 50 Canada Cumulative percentage of Households Income Lowest 40 16 Lowest Bo 56 Draw the line of equality Draw the Lorenz curve for the United States Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households. Label it U.S. Draw the Lorenz curve for Canada. Draw a point to show the cumulative percentage of income received by the lowest 40 percent of households Labelit Canada Based on this data, which country has the more unequal distribution? OA. Canada B. The United States OC. It is impossible to tell without more information OD. Neither. They have the same degree of inequality 100 90- 00 70- 60- 60- 40- 30- 20 10 Cumulative percentage of income 10 20 30 40 50 60 70 80 90 100 Cumulative percentage of households >>>Draw only the objects specified in the question. G
- For Question 7 please refer to the chart below of the Lorenz Curve for Paraguay and Germany for 2014: Percent of Total Income Paraguay -Germany Percent of Total Population Based on the table above, which of the following is true; Paraguay has a greater degree of Income Inequality Germany has a lower Gini-Coefficient Paraguay has a higher Gini-Coefficient Germany has a greater degree of Income Inequality8. Four students have yearly incomes of $5,000, $15,000, $20,000, and $60,000. a. Make a table of the Lorenz Curve and use the Trapezoidal Rule with 4 trapezoids to find the area under the Lorenz Curve. Your answer should be correct to 2 places after the decimal point. The area under the Lorenz Curve is b. Use the results of Part a to find the Gini Index. Your answer should be correct to 2 places after the decimal point. The Gini Index isThe $1.4 billion trick to make us accept income inequality Lotteries take money from the poor and redistribute it unequally. The poor, the uneducated, and minorities play the lottery the most, and it takes a big chunk of their income Source: The Huffington Post, January 12, 2016 If the news clip is correct, how does a lottery change the distribution of income? Draw two Lorenz curves to illustrate your answer. Lotteries result in the distribution of income Draw the Lorenz curve in a country that does not have lotteries. Label it Before Draw the Lorenz curve for the country after the introduction of lotteries. Label it After >>> To reposition the label click on the cross by the label box and dragging it 100 80 60 40- 20 Cumulative percentage of income 100 20 40 60 00 Cumulative percentage of households >>>Draw only the objects specified in the question G
- 1. An economy's Lorenz Curve reveals that an economy's highest income quintile has 65% of the economy's income while the lowest income quintile only has 5% of the economy's income. Solely based on the Lorenz Curve, is this distribution of income fair? Why or why not? 2. To combat income inequality and to generate increased tax revenues to fund expenditures, government officials decide to aggressively increase how progressive income taxes are, so much so that the top income earners are marginally taxed 90% of their income (and while this marginal tax rate may seem oppressive, these top income earners still have more than enough income to satisfy all of their needs and all but the most extravagant of wants - basically, these earners have more than enough money). Argue why this tax policy is a fair approach to fund government expenditures. Why might this tax policy fail to achieve its objectives (tax revenues would actually decline as a result)?3. Comparing Gini coefficients of different countries Aa Aa The following diagram shows the Lorenz curves for three countries. Country X's Lorenz curve is shown in blue, Country Y's Lorenz curve is shown in red, and Country Z's Lorenz curve is shown in green. Region I is the area above Country X's Lorenz curve and below the 45-degree line. Region II is the area below Country X's Lorenz curve and above Country Y's Lorenz curve. Region III is the area below Country Y's Lorenz curve and above Country Z's Lorenz curve. Region IV is the area below Country Z's Lorenz curve. INCOME (Cumulative percent) 100 80 60 40 20 0 The Gini coefficient for Country Z is given by Couny X 20 Country Y Country Z 11 III 60 IV 40 100 HOUSEHOLDS (Cumulative percent) 80 has the highest Gini coefficient.Incomes in China and India are a small fraction of incomes in the United States. But incomes in China and India are growing more quickly those in the United States. Draw the world Lorenz curve before the growth in income in China and India. Label it Before. >>> Reposition the label by clicking on the edge of the label box and dragging it. Draw the world Lorenz curve after the growth in income in China and India. Label it After. Inequality between the people in China and India and the people in the United States is O A. increasing OB. staying relatively constant C. decreasing OD. increasing in some years and decreasing in other years % 5 6 Selected: none Oll 87 & 7 O * 8 O 100- 80- 60- 40- 20- 0 Cumulative percentage of income ( 9 20 40 80 60 Cumulative percentage of households >>> Draw only the objects specified in the question. Delete Clear * ? ) 0 Next x 10 an rld" it fe dust real- lesto SITI Oriente 1 C++ ( Camp.o NS 1 ye Coding hool Stu Mihailescu NS 2 year. ython - Fu ers [Tutoria…
- 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…What is the primary measure of income inequality that represents the dispersion of income among a population? A. Price index B. Lorenz curve C. Gini coefficient D. Phillips curveUsing the above Lorenz Curve, answer the following questions. . . Approximately what percentage of the income does the richest 20% of Country A earn? Approximately what percentage of the income does the poorest 20% of Country B earn? If the government of Country B increased the progressivity of income taxes, would its Lorenz Curve move closer to the 45-degree reference line, closer to Country A's Lorenz Curve, or not move at all?
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)