2. Constructing a Lorenz curve from income shares dataThe following table shows the approximate income distribution for Peru, Bulgaria, and Lithuania in 2016. In particular, it shows the income shares ofeach fifth of the income distribution.Percentage Share, 2016Percentage of Families Peru BulgariaLithuaniaLowest fifth497Second-lowest fifth81412Middle fifth121716Second-highest fifthHighest fifth202222563843has the most total income.On the following graph, plot the Lorenz curves for the three countries. Plot Peru's Lorenz curve using the green points (triangle symbol), Bulgaria'sLorenz curve using the blue points (circle symbol), and Lithuania's Lorenz curve using the purple points (diamond symbol). Be sure to plot the firstpoint of each Lorenz curve at (0,0).Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.CUMULATIVE PERCENTAGE OF MONEY INCOMEgraph.)10020406080100CUMULATIVE PERCENTAGE OF FAMILIESPeruBulgariaLithuaniahas the most income inequality. (Hint: You may want to refer to the previous Lorenz curve

Peru is represented by green circles.Bulgaria is represented by blue diamonds.Lithuania is…

Answered: 2. Constructing a Lorenz curve from…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Below is a hypothetical breakdown of the income distribution in a country. Use those calculate what should be graphed on the Lorenz curve and then sketch a Lorenz curve for those given numbers. Using that Lorenz curve show how a Gini coefficient would be calculated and explain what the values of the Gini coefficient mean. (you do not have to calculate the Gini, just describe how you could do so)? Quintile Bottom 20% Lower Middle 20% Middle 20% Upper Middle 20% Top 20% Percent of GDP Received 16 20 $2
How Should the US Reduce Economic Inequality? The rich are getting richer. And the super rich are getting super richer. We know some of the names: Warren Buffett, Bill Gates, Mark Zuckerburg, the Walton family (of Wal-Mart). This billionaire club is growing fast. In 2007, there were 946 billionaires in the world. By 2016, that number doubled to 1,810. Of these, 540 were Americans. A 2015 OxFam report warned that the combined wealth of the world's the widening gap is benefitting the top 1 percent. The top 0.1 percent is doing even better. As just one example, CEOS have seen the real value of their salaries increase more than 1,000 percent since the 1950s. Meanwhile, the average worker has seen the real value of his or her income decrease over the last three decades. EV richest 1 percent would soon surpass the com- bined wealth of the other 99 percent of people on the planet. Wealth inequality is an increasingly serious problem in the United States, a nation known as the land of opportu-…
4. Discuss three problems that may arise from income inequality as it relates to economic development of a country.
Question 8
-what are some of the dimensions of economic inequality and what is considered income?
4. An economist produced the following Lorenz curves for the current income distribution and the projected income distribution 10 years from now in a certain country: Current Lorenz curve: f(x) = 0.15x+0.85x Projected Lorenz curve: g(x) = x'6 Compute the Gini index of income concentration ( to 2 decimal places ) for the current and projected curves. What can you say about the distribution of income 10 years from now? Is it more equitable or less?
Income Inequality” in America: Select one: a. has pretty much been eliminated b. is still a major problem in America c. is only seen among minority workers d. is only seen among women workers
Article Summary According to the U.S. Census Bureau, income inequality in the United States was "significantly higher" in 2018 than in 2017, with the gap between the richest and poorest households the largest it has been in the last 50 years. At the same time, median U.S. income hit its highest level ever, with a national economy experiencing low unemployment and more than 10 years of consecutive GDP growth. According to Rutgers University Professor William M. Rogers III, the most troubling aspect of this report is that it "clearly illustrates the inability of the current economic expansion, the longest on record, to lessen inequality." The Census Bureau report also states that the nation's poverty rate fell in 14 states and Puerto Rico, and that for the 25 largest U.S. cities, the poverty rate either remained the same or fell in 2018. Source: Bill Chappell, "U.S. Income Inequality Worsens, Widening To A New Gap", NPR, September 26, 2019. Refer to the Article Summary. The article…
Figure it out •Which country is the most equal? • A B • C • D FIGURE 5.4 Four Possible Lorenz Curves Percentage of income 100 0 7 D Percentage of population 100
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 Inequality
Please answer correct explain please asap Don't answer by pen paper plz.
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

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