Consider a 100-person economy, where half of the population receives 20% of the total income and the other half the remaining 80%. Using the Lorenz-curve approximation, what is the Gini coefficient in this economy (please use the comma to seprare decimals, such as: x,y)?
Q: A firms production function is π = 4x+8y-3x2-2xy-3y2 and it maximum output capacity 2x+y=15 What…
A: Production function is the relationship between input and output in a production process. That…
Q: Identify whether each of the following events in this scenario occurs in the factor market or the…
A: The circular flow of income shows how different economic sectors interact. For instance, the homes…
Q: A company produces two different versions of a certain product. Let q₁ indicate the amount produced…
A: There are two different versions of a good : q1 & q2Cost function of q1 : c(q1) =
Q: Suppose that a firm has production function f(K, L) = K². L². An isoquant curve for this production…
A: An isoquant, short for "isocost quantity," is a concept in microeconomics that represents the…
Q: Why Secondary Ticket Prices For NHL Finals Are Higher Than For NBA Finals In 2018 What could both…
A: The consumer choice theory describes that individuals in society make decisions on spending their…
Q: Calculate the daily total revenue when the market price is $90, $80, $70, $60, $50, $40, $30, and…
A: Demand curve is a downward sloping curve with price on the y-axis and quantity on the x-axis. As…
Q: Let the demand function for an homogeneous good be given by P(Q) = 200 - Q. Suppose there is an…
A: To find the level of output that would deter the entrant in this Stackelberg competition model, we…
Q: What is the fundamental reason why the Cournot model predicts that firms will make a positive…
A: The fundamental reason for the difference in predicted profits between the Cournot and Bertrand…
Q: Scooter's Scooters is a large American manufacturer of electric scooters operating out of Mesa.…
A: Economies of scale is when the increase in output decreases the average total cost. Diseconomies of…
Q: Which of the following is the best description of a production 'isoquant'? The set of all inputs…
A: Isoquant is actually a concave shaped curve which indicates the trade off of two or more factors of…
Q: A profit-maximising firm in a competitive market is currently producing 1,000 units of…
A: A competitive industry refers to a type of industry in which there are many buyers and sellers…
Q: If the tariff rate on the final product is 5 percent and no imported inputs are used in the domestic…
A: The answer is b. 5 percentThe effective rate of protection (ERP) measures the level of protection…
Q: Some argue that controls on some payers lead to a shift in cost to other payers (and that a…
A: The concept of cost shifting in healthcare refers to the idea that when one payer, such as a…
Q: For each policy listed, identify whether it is a command-and-control policy (regulation), tradable…
A: It can be defined as a form of tax which is imposed by the government of that nation on such…
Q: Buying and selling textbooks are two separate decisions made at the margin. Textbooks create value…
A: The consumer surplus is when a consumer is willing to pay less than its product price. It is based…
Q: Outdoors season is underway in Minnesota, and Maris and her childhood friends are planning a weekend…
A: Rival goods are those good where consumption of the good by one party reduces the amount available…
Q: a. Graph the demand curve for funnel cakes. Instructions. Use the tool provided 'Demand' to plot the…
A: The demand curve is a graphical representation of the quantity of a good demanded at various price…
Q: With the Firm Y response function Qy=600-1/2Qx and the Firm X response function Qx=600-1/2Qy…
A: In economics, the game of Stackelberg, two players with the leading and trailing firms function in…
Q: Suppose the price level reflects the number of dollars needed to buy a basket of goods containing…
A: Inflation implies the general increment in the prices of products and services in an economy over…
Q: If X ~ N(3, 4), which of the following transformed variables has the standard normal distribution?…
A: The standard normal distribution, also called the z-distribution, is a special normal distribution…
Q: Regulation Versus Tradable Permits Determine the total cost of eliminating six units of pollution…
A: Two methods of pollution control measures are taken into consideration :1) Government regulation2)…
Q: 18- at a level of output, average cost=20$, average variable cost=10$ and total costs=900$. Given…
A: Total cost is the sum of fixed costs and variable costs. The total variable cost is the cost that…
Q: The cross price elasticity for beef with respect to chicken is 0.0572. if the price of beef rose 10…
A: Price elasticity of demand refers to the percentage change in the demand with respect to the…
Q: a. Graph the demand curve for bathing suits. Instructions: Use the tool provided "Demand' to plot…
A: Given,Demand for Bathing SuitsPrice(dollars)Quantity of Bathing Suits…
Q: What polices would lead to unintended consequences like black markets? Explain
A: Unintended consequences are outcomes that are not the ones forseen and intended by a purposeful…
Q: Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in…
A: It can be defined as the concept of economics which shows the relation between inputs and the output…
Q: On the following graph, use the orange points (square symbol) to plot the nominal interest rates for…
A: Nominal interest rates don't account for inflation and real interest rates account for inflation.
Q: You convene a committee, which has made the following suggestions: • Newly printed Libyan…
A: Store of value:A store of value is an attribute of money or an asset that can be saved, retrived,…
Q: Market Share The following figure shows the devastating effect the opening of a new discount…
A: The below figure represents the revenues of the discount store and that of established department…
Q: How can persuasive technology be employed to foster environmentally friendly consumer behavior, such…
A: In an era characterized by growing environmental concerns, it has become imperative to leverage…
Q: Roll over each income attribute, then match it with the income component it best describes. After…
A: Gross income refers to the sum of all wages, income, profits, rents, returns on investments and…
Q: a) Write an expression for 8(t) (aka: force of interest) such that its accumulation function is the…
A: The force of interest, denoted as δ(t), is a concept in mathematics and finance that measures the…
Q: 8. Problems and Applications Q8 A case study in the chapter analyzed purchasing-power parity for…
A: Purchasing power parity is a way of measuring what an amount of money will buy in different…
Q: What is the opportunity cost to Joe Blow of rejecting that offer
A: Opportunity cost refers to the value of the next best alternative that must be given up in order to…
Q: Which of the following is an important difference between Marshallian demand and Hicksian demand?…
A: Marshallian demand refers to the quantity of a good or service that an individual or household is…
Q: Which of the following is a quality of a command economy? A Individuals determine what goods and…
A: Economies can be categorized into various types depending on how they are organized to produce,…
Q: cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs…
A: Net Present ValueNet present value (NPV) determines the net benefit from a specific investment as of…
Q: Aggregate spending equals Select one: a.C+I-G+X-IM b.C+I+G+X-IM c.C+I+G-X-IM d.C+I+G+X+IM…
A: Aggregate spending is the total spending on goods and services by consumers, businesses, government,…
Q: A constant cost perfectly competitive market is in long run equilibrium. At present, there are 1,000…
A: Perfect competition is a market arrangement in which there is zero rivalry between the various…
Q: A movement along a macro production possibilities frontier is caused by a change in Select one: a.…
A: Production possibilities frontier shows the combinations of two inputs that can be used to produce…
Q: Provide a real-world example of a binding price ceiling. Why might policy makers have introduced…
A: It can be defined as the maximum limit of the price of any commodity decided by the government of…
Q: Homemakers are not part of the labour force. Select one: True False
A: Labour force is the sum of employed and unemployed people. Employed people are those who are willing…
Q: . Consider the following figure. Describe and explain what this figure presents and the economic…
A: In the above diagram, the capital accumulation of two periods is represented as Kt and Kt+1. The…
Q: The average cost of living is approximately the same in the following three cities in the United…
A: It can be defined as the decision that an individual or any other entity takes between the different…
Q: Five years ago you invested $18,419 at a 5% market interest rate. If the inflation rate is 2%, what…
A: In the economic climate of today, rates of interest and inflation are essential. Inflation affects…
Q: 7 The Chuzzlewits have an income of $m per week. Let x be food and let y be all other goods. Let px…
A: Income refers to the amount of money and other transferable value received over a given period of…
Q: A machine requires two hours to make a unit of Product X and six hours to make a unit of Product Y.…
A: The method of producing products is described by the production function. Equations can also include…
Q: 3. Consider a model where a consumer, Mehdi, is deciding how to allocate their 24 hours each day…
A: Wage is cost of leisure. So change in wage , change cost of leisure and thus consumption of leisure…
Q: Suppose that the production function is given by Y=AK0.4N0.6. What is the percentage change in…
A: Production function shows the relationship between the inputs used and the output produced. The…
Q: company is planned to install new automated plastic molding press. Four different presses are…
A: Cash flow is the net balance of funds that enter and exit a business at a specific point in time. A…
No written by hand solution
Consider a 100-person economy, where half of the population receives 20% of the total income and the other half the remaining 80%. Using the Lorenz-curve approximation, what is the Gini coefficient in this economy (please use the comma to seprare decimals, such as: x,y)?
Step by step
Solved in 3 steps with 5 images
- 2. Draw a complete and dearly labeled Lorenz Curve using the information below. Lowest 2nd 3rd 5th Quantile Quantile Quantile Quantile Quantile 3.6% 8.9% 14.8% 23% 49.8%100% Cumulative percentage of income 90% -Jарan 80% --- Portugal 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative percentage of households Figure 5 Lorenz curves for Japan and Portugal Examine the Lorenz Curves for Japan and Portugal shown in Figure 5. Which of the following statements are correct? Select one or more answers. Select one or more: O The top quintile (top 20%) of households in Portugal have a higher share of total income than the top quintile (top 20%) of households in Japan. The bottom decile (bottom 10%) of households in Japan have a lower share of total income than the bottom decile (bottom 10%) of households in Portugal. Portugal will have a lower Gini coefficient than Japan. Japan has a lower level of income inequality than Portugal.Percent of Total Income (%) 69 Percent of Total Income (%) P Completed 19 out of 20 Submit All Question 1 of 20 > The table provides data on peprcentage of total income earned by quintile in two communities, Malaya and Carribea. Community Q1 Q2 Q3 Q4 Q5 Malaya 22% 38% Carribea 3% Using the data, manipulate the line segment in the graph to plot the Lorenz curve for Malaya. %0% 24% 48% 15% Malaya Q5 Carribea 00 0 96 92 Q2 Q3 Q4 Q5 96 92 88 84 84 72 08 89 72 89 64 09 52 52 Q3 44 32 24 Q2 32 28. 24 45-degree line 4. 45-degree line 8. 12 20. Activate Windows 12. Go to Settings to activate Windo 20. Percent of Population (%) 4. 40 09 08 00 0. 09 Percent of Population (%) 40. 08 LAPTOP LOGIN USERNAME: student CH PASSWORD: Broward1 F10 F11 F12 NumLk Scr Lk PrtSc Pause SysRq Break 8. 6
- (c) Draw the Lorenz curve.N Lorenz curve, shown as the sum of areas V+W+X+Y+Z % of Income C W V % of Population Use the sliders in the interactive tool to illustrate the following income distribution: % of Population 0 40 60 80 100 20 % of Income 4 12 26 46 1005- Calculate Gini coefficient for a country with the following deciles in income share data: Country X: 30 (richest quantile) 20 What is the area under the Lorenz Curve? Please show your diagram. 10 5 5 5 5 3 2
- What is the approximate Gini coefficient associated with the following income distribution? Household Percentile 0.23 0.08 0.68 0.48 0.13 20th 40th 60th 80th 100th Share of Income 0.05 0.10 0.20 0.25 0.40 Cumulative Share of Income 0.05 0.15 0.35 0.60 1.00The data in the table below shows the income of some random people in Massachusetts. If these were the only people in Massachusetts what is the average (absolute) difference in income among all the pairs? nаme Pre-tax income Mayor Wu $20 Tom Brady $120 Matt Damon $60 QUESTION 12 (continued) What is the Gini coefficient for Massachusetts?The table below presents the system in the country of Boonton. The numbers indicate the percentage of income in that bracket that is taxed. For example, someone making $13,000 would be taxed 23% of that amount. Income Earned Tax % applied to that Income Under $15,000 23 $15,001 - $30,000 24 $30,001 - $45,000 25 $45,001 - $60,000 27 If a household in Boonton currently makes $20000, how much do they owe in taxes?
- The table below presents the percentage of total income that goes to a certain fraction of the population of the country of Sanaton. For example, according to the table, the bottom 40% of the population owns 25% of the total income generated in Sanaton. What is the income share of the third quintile? Cumulative percentage of population 20 40 60 80 100 Cumulative percentage of income owned 15 25 40 60 100Canada had the following distribution of Income after taxes in 2006 Based on the information in the tables, which one is the correct Gini coefficient of income inequality? Deciles cumulative share of income Lorenz curve for after tax income in Canada 0% (2006) 1 0% 1 2 2%| 3 6% 0.8 4 11% 0.6 18% 0.4 26% 0.2 37% 50% 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 9 67% share of population 10 100% cumulative share of income equidistribution line O a. 0.47 O b. 0.43 O c. 0.42 O d. 0,44 O e. 0.23 O share of incomeThe table below shows information about the distribution of income in two countries. The rows are labeled "deciles" which are like percentiles but for groups of 10% instead of 1% of the population. The 1St decile is the poorest 10%, for example, while the 10th decile is the richest 10%. Coruscant Naboo cumulative income cumulative income decile income share share income share share 1st 2.29% 2.29% 3.12% 3.12% 2nd 3.93% 6.22% 4.50% 7.62% 3rd 5.30% 11.52% 5.69% 13.31% 4th 6.56% 18.08% 6.80% 20.11% 5th 7.81% 25.89% 7.91% 28.02% 6th 9.14% 35.04% 9.11% 37.13% 7th 10.69% 45.73% 10.52% 47.65% 8th 12.71% 58.44% 12.37% 60.02% 9th 15.94% 15.32% 10th 25.61% 24.66% mean income = 50,000 35,000 What is the cumulative income share for the bottom 9 deciles in Naboo?
