Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![(4) A well-known measure of economic inequality is the log variance. It is measured by
n:[In y; – In µ]².
LV =
Show that this measure satisfies anonymity, the population principle and the relative income
principle, but fails to be Lorenz-consistent.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F789fa26b-aea4-415a-b989-a47938b2b9cb%2F85aa27c9-7b21-4c80-863f-fa69a706ddf4%2Fk33etlu_processed.png&w=3840&q=75)
Transcribed Image Text:(4) A well-known measure of economic inequality is the log variance. It is measured by
n:[In y; – In µ]².
LV =
Show that this measure satisfies anonymity, the population principle and the relative income
principle, but fails to be Lorenz-consistent.
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