5:54The graph shown displays a Lorenz curve.0%Cumulative share of peopleMultiple ChoiceCumulativeshare ofincomeI only100%Which of the following statements is true?1. The midpoint of each line demonstrates the area with least inequality.II. Curve a demonstrates a more equal society than curve B.III. On both curves, individuals in the 99th percentile of the income distribution earn more than 1 percent of the total income.0%100%< Prev 13 of 25#Next > Ey)0%Cumulative share of peopleMultiple ChoiceOWhich of the following statements is true?1. The midpoint of each line demonstrates the area with least inequality.II. Curve A demonstrates a more equal society than curve B.III. On both curves, individuals in the 99th percentile of the income distribution earn more than 1 percent of the total income.I onlyIl and Ill onlyI and Ill only0%I, II, and Ill100%Proy12 of 25 #MovtHelpSave

Lorenz curve is a graphical representation of the share of various percentages of population in…

Cumulative share of people Cumulative share of income 100% 0% 100% Which of the following statements is true? 1. The midpoint of each line demonstrates the area with least inequality. II. Curve A demonstrates a more equal society than curve B. III. On both curves, individuals in the 99th percentile of the income distribution earn more than 1 percent of the total income.

Cumulative share of people Cumulative share of income 100% 0% 100% Which of the following statements is true? 1. The midpoint of each line demonstrates the area with least inequality. II. Curve A demonstrates a more equal society than curve B. III. On both curves, individuals in the 99th percentile of the income distribution earn more than 1 percent of the total income.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The table below shows the share of income going to each quintile of the income distribution for a nation in 1950 and 2000. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. The purple line represents 1950. The green line represents 2000. Share of income received 1950 2000 Bottom 20% 10% 5% Bottom 40% 30% 15% Bottom 60% 50% 35% Bottom 80% 75% 60% All 100% |100% 100% Provide your answer below: 110 100 -90 -80 (90, f0) (100, 70) 60 Perfect Equality (100,50) Year 2000 50 (80,50 Year 1950/ 40 (70, 30) 30 (50, 20) 20 (90, 20) 10 (60, 10) 60 80 Income Quintiles 20 40 100 -10 Cumulative Share of Income
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