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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Document A Source: Adapted from the video "Wealth Inequality in America," 2012; and the Organization for Economic Coop- eration and Development, 2015. Note: In 2011, a Harvard professor surveyed more than 5,000 Americans on how they thought wealth was distributed in the United States and how it should be distributed. The top two bars show the results of the survey by quintile. The bottom bar shows the actual distribution of wealth in the United States. Public Perceptions of Economic Inequality in the US EV Presumed Distribution of Wealth wealthiest fourth 20% middle 20% second 20% 20% Ideal Distribution of Wealth wealthiest poorest 20% fourth 20% middle 20% second 20% 20% poorest 20% Actual Distribution of Wealth wealthiest 20% Note: In 2015, the wealthiest 20 percent of Americans owned 88 percent of the nation's wealth. The second- wealthiest quintile owned 9 percent. The middle quintile owned 3 percent. The bottom two quintiles owned less than 1 percent. fourth 20 middle 20% poorest…
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
The table below shows the share of income going to each quintile of the income distribution for a nation in 1960 and 2010. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. The purple line represents 1960. The green line represents 2010. Share of income received 1960 2010 Bottom 20% 10% 5% Bottom 40% 30% 10% Bottom 60% 45% 30% Bottom 80% 75% 60% All 100% 100% |100% Provide your answer below: 110 100- -90 -80 (90,0) -70 (100, 70) -60 Perfect Equality (100,50 Year 2010 -50 (80,50) Year 1960 40 (70, 30) 30- (50, 20) 20 (90, 20) 10 (60, 10) 80 100 Income Quintiles 20 40 60 -10 Cumulative Share of Income
The table shows the income shares in the United States and the United Kingdom. Draw the U.K. Lorenz curve and compare it with the Lorenz curve in Fig. 19.3 on p. 441. In which country is income less equally distributed?
Percent of Percent of income income Alpha Beta Household percentage Lowest 20 percent Second 20 percent Third 20 percent Fourth 20 percent Highest 20 percent 9. 10 5 12 10 29 20 40 60 68. The above table shows the distribution of income in two countries, Alpha and Beta. Based on these distributions of income a. Country Beta has more equal distribution than does Country Alpha b. Both countries have equal distributions because 100 percent of the incomes are accounted for c. The Lorenz curve for country Beta is closer to the line of equality d. Country Alpha has a more equal distribution of income than does Country Beta e. It is impossible to answer the question without more information
The $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 ilustrate 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
Which statements are TRUE? A. Modern sector enlargement assures a better Lorenz Curve for a nation. B. The average poverty gap measures the sum of the differences the income of each person from the absolute poverty line. C. The multidimensional poverty index gives equal weight to all eight indicators. D. The normalized income shortfall is a measure of income inequality.
Below is a Lorenz Curve for a given country. Suppose its government cuts spending on Medicaid, Supplemental Nutrition Assistance Program and other aids to the poor. Show how the spending cuts would affect income inequality by drawing the new Lorenz Curve.
Draw the line of equality. 100- Draw a Lorenz curve for the distribution of income and label it. >>> Reposition the label by clicking on the edge of the label box and dragging it. 80- Draw a Lorenz curve for the distribution of wealth and. Label it. 60- 40- A household's point in time. A household's is the value of the things that it owns at a 20- is the amount that the household receives over a given period of time. C OA. wealth; income B. estate; revenue OC. estate; salary OD. fortune; revenue Cumulative percentage of income and wealth 0+ 0 20 40 60 80 100 Cumulative percentage of households (100,0) >>> Draw only the objects specified in the question.
In DevEconLand, there are 10 people. Four of them earn $1/day each, two earn $3/day each and the remaining four earn $4/day each. If the poverty line is defined as $2/day, what is the headcount ratio, the total poverty gap ratio and the total poverty gap squared ratio respectively? Select one: a. 1/5, 1/5 and 1/10 respectively. b. 1/5, 2/5 and 1/5 respectively. c. 2/5, 1/5 and 1/10 respectively. d. None of the above.
Ma1. Using diagrams, discuss the following aspects of income inequality. Draw two different Lorenz Curves, LCA & LCB, where the two curves cross. Discuss and compare the two in terms of the Top 1% Share.
8. 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 is