3. Suppose that the Lorenz Curve for country A is given by yA =0.3x2 + 0.7x. Use the Gini index to deter-x2.2mine which of the two countries has greater inequality in its incomeand for country B is yB =distribution.

Lorenz curve and Gini index are used to describe the amount of income inequality that exists in a…

3. Suppose that the Lorenz Curve for country A is given by yA = x2.2 and for country B is yB mine which of the two countries has greater inequality in its income distribution. 0.3x2 + 0.7x. Use the Gini index to deter-

3. Suppose that the Lorenz Curve for country A is given by yA = x2.2 and for country B is yB mine which of the two countries has greater inequality in its income distribution. 0.3x2 + 0.7x. Use the Gini index to deter-

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter17: Income, Poverty, And Health Care

Section: Chapter Questions

Problem 2P

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3. Suppose that the Lorenz Curve for country A is given by yA =
0.3x2 + 0.7x. Use the Gini index to deter-
x2.2
mine which of the two countries has greater inequality in its income
and for country B is yB =
distribution.

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