For Question 7 please refer to the chart below of the Lorenz Curve for Paraguay and Germany for 2014: Percent of Total Income 0 Paraguay Germany Percent of Total Population Based on the table above, which of the following is true; Paraguay has a greater degree of Income Inequality Germany has a lower Gini-Coefficient Paraguay has a higher Gini-Coefficient Germany has a greater degree of Income Inequality

For Question 7 please refer to the chart below of the Lorenz Curve for Paraguay and Germany for 2014: Percent of Total Income 0 Paraguay Germany Percent of Total Population Based on the table above, which of the following is true; Paraguay has a greater degree of Income Inequality Germany has a lower Gini-Coefficient Paraguay has a higher Gini-Coefficient Germany has a greater degree of Income Inequality

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Cumulative percentage of income 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% -Germany ‒‒‒ 10% Singapore 20% 30% 40% 50% %09 70% 80% %06 100% Cumulative percentage of households Figure 5 Lorenz curves for Germany and Singapore 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.
Let y = L,(x), y = L2(x), y = L3(x) be the Lorenz curves of Country A, B and C, respectively. 0.8- 0.6 y = x y = L3(x) 0.4 - = L2(x) y = L1() 0.2 0.2 0.4 0.6 0.8 Which of the following statements is/are TRUE? I. Country C has the least inequality in income distribution. II. The distribution of income in Country A is more equitable than in Country B. III. Country C has the highest Gini index. IV. There is greater inequality in income distribution in Country B than in Country C.
As income transfer programs accompanying the War on Poverty increased beginning in the latter half of the 1960s, what happened to poverty in the United States? Check all that apply. After the start of the War on Poverty, the downward trend in the poverty rate halted. In 2018, the adjusted poverty rate was only 4 percentage points lower than the official rate in 1970. The poverty rate declined substantially in the period after the War on Poverty, but not in the period before the start of the War on Poverty. The adjusted poverty rate has declined rapidly and is now less than half of the official poverty rate.
Which of these is true of the Lorenz curve? The further away it is from the 45 degree line the more unequal is distribution. The closer it is to the 45 degree line the more unequal is distribution.
Why the research of migrant workers that affect the income inequality is important to the community, the people, and various institutions?
A Lorenz curve is a graphical representation of wealth distribution among a population. Conduct research to learn more about the Lorenz curve and answer the following questions. Draw a Lorenz curve and label the following components: Lorenz curve, income inequality line, total population and total income. Explain the shape of the curve in terms of income distribution, i.e. what happens to income inequality as you move along the Lorenz curve? Explain the concept of economic mobility as it relates to the Lorenz curve.
Suppose the income share of the population by quintile is the following: Income Share (percent) Quintile 1 4.5 Quintile 2 14.7 Quintile 3 19.8 Quintile 4 24.0 Quintile 5 37.0 What is the Gini coefficient? Round your answer to the nearest second decimal.
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 illustrate 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
3. Comparing Gini coefficients of different countries Aa Aa The following diagram shows the Lorenz curves for three countries. Country X's Lorenz curve is shown in blue, Country Y's Lorenz curve is shown in red, and Country Z's Lorenz curve is shown in green. Region I is the area above Country X's Lorenz curve and below the 45-degree line. Region II is the area below Country X's Lorenz curve and above Country Y's Lorenz curve. Region III is the area below Country Y's Lorenz curve and above Country Z's Lorenz curve. Region IV is the area below Country Z's Lorenz curve. INCOME (Cumulative percent) 100 80 60 40 20 0 The Gini coefficient for Country Z is given by Couny X 20 Country Y Country Z 11 III 60 IV 40 100 HOUSEHOLDS (Cumulative percent) 80 has the highest Gini coefficient.
Incomes in China and India are a small fraction of incomes in the United States. But incomes in China and India are growing more quickly those in the United States. Draw the world Lorenz curve before the growth in income in China and India. Label it Before. >>> Reposition the label by clicking on the edge of the label box and dragging it. Draw the world Lorenz curve after the growth in income in China and India. Label it After. Inequality between the people in China and India and the people in the United States is O A. increasing OB. staying relatively constant C. decreasing OD. increasing in some years and decreasing in other years % 5 6 Selected: none Oll 87 & 7 O * 8 O 100- 80- 60- 40- 20- 0 Cumulative percentage of income ( 9 20 40 80 60 Cumulative percentage of households >>> Draw only the objects specified in the question. Delete Clear * ? ) 0 Next x 10 an rld" it fe dust real- lesto SITI Oriente 1 C++ ( Camp.o NS 1 ye Coding hool Stu Mihailescu NS 2 year. ython - Fu ers [Tutoria…
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
Imagine an economy with only two people. Larry earns $20,000 per year, while Roger earns $80,000 per year. As shown in the following figure, the Lorenz curve for this twoperson economy consists of two line segments. The first runs from the origin to point a, while the second runs from point a to point b. a. Calculate the Gini ratio for this two-person economy using the geometric formulas for the area of a triangle (= ½ × base × height) and the area of a rectangle ( = base × height). (Hint: The area under the line segment from point a to point b can be thought of as the sum of the area of a particular triangle and the area of a particular rectangle.) b. What would the Gini ratio be if the government taxed $20,000 away from Roger and gave it to Larry? (Hint: The figure will change.) c. Start again with Larry earning $20,000 per year and Roger earning $80,000 per year. What would the Gini ratio be if both their incomes doubled? How much has the Gini ratio changed from before the doubling…