Examine the Lorenz Curves for Germany and Singapore shown in Figure 5. Which of the following statements are correct? Select one or more answers. Select one or more: The bottom quintile (bottom 20%) of households have a higher share of total income in Singapore than Germany. The top quintile (top 20%) of households have a higher share of total income in Singapore than in Germany. Singapore will have a lower Gini coefficient than Germany. Germany has a lower level of income inequality than Singapore. 00

Examine the Lorenz Curves for Germany and Singapore shown in Figure 5. Which of the following statements are correct? Select one or more answers. Select one or more: The bottom quintile (bottom 20%) of households have a higher share of total income in Singapore than Germany. The top quintile (top 20%) of households have a higher share of total income in Singapore than in Germany. Singapore will have a lower Gini coefficient than Germany. Germany has a lower level of income inequality than Singapore. 00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

The tables show the (approximate) distributions of money income in the United States and Canada United States Cumulative percentage of Households Income Lowest 40 Lowest BO 12 50 Canada Cumulative percentage of Households Income Lowest 40 16 Lowest Bo 56 Draw the line of equality Draw the Lorenz curve for the United States Draw a point to show the cumulative percentage of income received by the lowest 80 percent of households. Label it U.S. Draw the Lorenz curve for Canada. Draw a point to show the cumulative percentage of income received by the lowest 40 percent of households Labelit Canada Based on this data, which country has the more unequal distribution? OA. Canada B. The United States OC. It is impossible to tell without more information OD. Neither. They have the same degree of inequality 100 90- 00 70- 60- 60- 40- 30- 20 10 Cumulative percentage of income 10 20 30 40 50 60 70 80 90 100 Cumulative percentage of households >>>Draw only the objects specified in the question. G
Lp = x^p for p is greater than or equal to 1 - Does a low Gini index correspond to an equitable or inequitable distribution of wealth? Explain. - for a general L(x), explain why G=2A
A mother who does not work receives $18,000 in welfare benefits from the government. Suppose that she takes a full-time job paying only $18,000, but forcing her to forego the $18,000 in government benefits. The mother would have to work 50 hours to reach an income of $20,000. This scenario is an example of what type of poverty situation? Review the selections below and choose the one which best answers the question. Select the correct answer below: The poverty trap. The poverty line. The equilibrium wage ratio. O The imbalance of employee wages.
Question 2 population 12, group B has population 12 and group C has population 4. Each person in group A has income $3, each in group B has income $8 and each in group C has income $16. The poverty line is p = 10 (anyone with income below $10 is considered poor). A region has 28 people and three income groups A,B,C. Group A has There is a budget of $48 to be given among groups whose income falls below p=10. Each person within the same group must receive the same amount. Assume that every dollar received by an individual is invested and this raises the income of the individual by a dollar. Consider the following policies: Policy 1: allocate $24 to group A, $24 to group B Policy 2: allocate $36 to group A, $12 to group B Policy 3: allocate $12 to group A, $36 to group B Showing all steps of your work, find HCR, PGR, IGR under each of the three policies and determine (i) which policy/policies give the lowest HCR, (ii) which policy/policies give the lowest PGR and (iii) which…
a) With the following data draw a Lorenz Curve, putting labels on the graph and writing out data point values. Explain what the Lorenz Curve illustrates, and what the results mean. b) Now explain how one gets the Gini Coefficient from the Lorenz Curve, and what information the coefficient provides.
Use the data from the table below to construct a Lorenz curve. Income Shares in the United States Lowest 20% Second Lowest 20% Third 20% Fourth 20% Highest 20% 5.2 10.3 15.3 22.4 46.9
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Consider an economy with 4000 people and the following income distribution: each person in the bottom quartile of the income distribution earns $10 dollars per hour; each person in the 2nd quartiles earns $20 dollars per hour; each person in the 3rd quartiles earns $25 dollars per hour;and each person in the top quartile of the income distribution earns $45 dollars per hour. (2) Suppose the bottom quartile pays no taxes, the 2nd quartiles pay 10% its income in taxes, the 3rd pays 20% and the top quartile pays 40% of its income in taxes. 80% of all tax money is redistributed equally to all citizens in the form of military defense, government pensions (social security), roads/highways, etc. The remaining tax money is distributed entirely to the poorest quartile. What is the Gini coefficient associated with this redistribution plan?
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
Suppose that the United States has a Gini ratio of 0.41 while Sweden has a Gini ratio of 0.31. Which country has a more equal distribution of income? a. The United States. b. Sweden. c. They are actually equal