The table shows three alternative distributions of land ownership in a village with 100 people and 100 hectares of land. Draw the Lorenz curves for each case. For cases I and III calculate the Gini. For case II, show on the Lorenz curve diagram how the Gini coefficient can be calculated. Note this is exercise 5.9 for CORE Project The Economy. 10 people own 10 hectares Case I 90 people own nothing each 34 people own 1 hectare 27 people own 2.44 hectares Case II 39 people own nothing each each 100 people own 1 hectare Case III each. (a) What is the Gini for Case I (between 0 and 1, within two deci (Alt + A) ¡g. 0.12)? Make sure you round correc (b) What is the Gini in Case II? (between 0 and 1, within two decimal places, e.g. 0.34)? Make sure you round correctly. 固团画 (c) What is the Gini in Case IlI? (between 0 and 1, within two decimal places e.g. .99)? Make sure you round correctly.

The table shows three alternative distributions of land ownership in a village with 100 people and 100 hectares of land. Draw the Lorenz curves for each case. For cases I and III calculate the Gini. For case II, show on the Lorenz curve diagram how the Gini coefficient can be calculated. Note this is exercise 5.9 for CORE Project The Economy. 10 people own 10 hectares Case I 90 people own nothing each 34 people own 1 hectare 27 people own 2.44 hectares Case II 39 people own nothing each each 100 people own 1 hectare Case III each. (a) What is the Gini for Case I (between 0 and 1, within two deci (Alt + A) ¡g. 0.12)? Make sure you round correc (b) What is the Gini in Case II? (between 0 and 1, within two decimal places, e.g. 0.34)? Make sure you round correctly. 固团画 (c) What is the Gini in Case IlI? (between 0 and 1, within two decimal places e.g. .99)? Make sure you round correctly.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the Lorenz curve and what does it illustrate? Are incomes distributed equally? What would happen if incomes were equal? Why do you think income distribution is so unequal? Identify and explain three reasons.
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Suppose there are 3 households in each society. This table shows income for poor, middle, and rich household, average income for all households, and the Gini coefficient for 4 societies. Based on this table, which of the following is true? (Select all that apply.) Society A Society B Society C Society D оооо Household Income Poor Middle Household Household 20,000 15,000 25,000 30,000 40,000 40,000 40,000 40,000 Rich Household 75,000 100,000 200,000 10,000,000 Society D has the most unequal income distribution. Society A has the most equal income distribution. Society D has the highest overall average income. Society A has the lowest overall average income. Average Income 45,000 51,667 88,333 3,356,667 Gini coefficient .27 .37 .44 .66
Question One The figure below shows three alternative distributions of land ownership in a village with people and 100 hectares of land. a. Draw the Lorenz curves for each case. 10 points b. For cases I and III, calculate the Girl 10 points c For case il, show on the Lorenz curve diagram how the Gini coefficient can be calculated. 5 points Question One The figure below shows three alternative distributions of land ownership in a village with 10 people and 100 hectares of land. a. Draw the Lorenz curves for each case. b. For cases I and III, calculate the Gini c. For case II, show on the Lorenz curve diagram how the Gini coefficient can be calculate 80 people own nothing 20 people own 5 hectares each 40 people own nothing 40 people own 20 people own 1 hectare each 3 hectares each 100 people own 1 hectare each
A group of 10 golfing buddies have the following annual incomes: Income $32, 000 $12, 000 $56, 000 $120, 000 $10, 000 $38, 000 $70, 000 $16, 000 $20, 000 $24, 000 What is the total amount of income comprising the lowest quintile of this income distribution? Provide your answer below:
Q2] Given is the data for Country A and B: Population Fraction Country A's Income Country B's Income bottom 25% 5 million 10 million 2nd 25% 10 million 15 million 3rd 25% 30 million 20 million top 25% 55 million 55 million a) Compute the cumulative income share and neatly plot (using Excel) the Lorenz curve for these two countries with labels. Feel free to use excel template that I have uploaded and copy paste the plot. b) Compute the Gini coefficient assuming the region beneath the two respective Lorenz curve is For country A = 0.2875 For country B = 0.3250
2. Constructing a Lorenz curve from income shares data The following table shows the approximate income distribution for Peru, Bulgaria, and Lithuania in 2016. In particular, it shows the income shares of each fifth of the income distribution. Percentage Share, 2016 Percentage of Families Peru Bulgaria Lithuania Lowest fifth 4 9 7 Second-lowest fifth 8 14 12 Middle fifth 12 17 16 Second-highest fifth Highest fifth 20 22 22 56 38 43 has the most total income. On the following graph, plot the Lorenz curves for the three countries. Plot Peru's Lorenz curve using the green points (triangle symbol), Bulgaria's Lorenz curve using the blue points (circle symbol), and Lithuania's Lorenz curve using the purple points (diamond symbol). Be sure to plot the first point of each Lorenz curve at (0,0). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. CUMULATIVE PERCENTAGE OF MONEY INCOME graph.) 100 20 40 60 80 100…