For the two questions, use the provided Lorenz curve.Income100%Lorenz curveIf the economy's income were distributed accordingto the Equality line, what would the Gini coefficientbe?100.5Infinity806060601040If the economy's income were distributed accordingto the A line, how much of the economy's income isearned by the third quintile of families?60%40%20%100%20Equality020%4040A506080100Families

Question 1: Gini Coefficient for the Equality LineUnderstanding the Gini CoefficientThe Gini…

Answered: For the two questions, use the provided…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 1SQP

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Which set of policies is more likely to cause a tradeoff between economic output and equality: policies of redistribution policies aimed at the ladder of opportunity? Explain how the production possibility frontier tradeoff between economic equality and output might look in each case.
What goods and services would you include in an estimate of the basic necessities for a family of four?
If a country had perfect income equality what would the Lorenz curve look like?
Here is one hypothesis: A well-funded social safety net can increase economic equality but will reduce economic output. Explain why this might be so, and sketch a production possibility curve that shows this tradeoff.
What is measured on the two axes of a Lorenz curve?
The following table shows the income share by quintile for Egypt, China, Mexico, and the United States ca. 2010. Draw the Lorenz curves for each country. Which country has the highest Gini coefficient? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Egypt b Mexico C USA d None of the above Quintile Egypt Mexico United States 1 9.25 4.86 4.67 2 13.01 8.84 9.74 3 16.37 12.75 15.31 4 21.04 19.45 23.19 5 40.33 54.10 47.09
When the Lorenz curve lies above thediagonal,a. the poorest 20 percent of the populationreceive more than 20 percent of income.b. the richest 20 percent of the populationreceive more than 20 percent ofincome.c. everyone receives the same income.d. the curve is wrong because it is impossible forthe graph to look like this.
nd Study Tools tions ccess Tips cess Tips Back 2. Constructing a Lorenz curve from income shares data The following table shows the approximate income distribution for Colombia, Ukraine, and Turkey in 2011. In particular, it shows the income shares of each quintile of the income distribution. Income Group Lowest quintile Second quintile Third quintile Fourth quintile Highest quintile Percentage of Total Income, 2011 Turkey Colombia Ukraine 2 9 5 6 14 10 17 14 21 50 18 63 22 38 has the most total income. On the following graph, plot the Lorenz curves for the three countries. Plot Colombia's Lorenz curve using the green points (triangle symbol), Ukraine's Lorenz curve using the blue points (circle symbol), and Turkey's Lorenz curve using the purple points (diamond symbol) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
Questions Explain three methods of measuring the income inequality of a nation? Page 3 other 2 pages in the pic As in the case of income distribution, calculation of wealth distribution is done by different entities using different measurements, resulting in a disparity in outcomes. In fact, commonly, wealthis narrowly defined as financial wealth—namely, cash on handand the money value of tangible and nonliquid assets. Even justthe market valuation of financial portfolios is commonly used todefine financial wealth. However, some may extend the definitionto include the value of income streams and insurance rights that,for the most part, cannot be transacted or encumbered. Theseinclude Medicare, Medicaid, and Social Security. When suchtransfers and public assistance are included, the poor and manyelderly could benefit, reducing the wealth disparity (Galbraith2016). To obtain net wealth, the value of the debts are subtractedsubtracted from the value of the assets. Galbraith stated…
Please answer correct explain please asap Don't answer by pen paper plz.
4Plz help4
Q8.2) Lorenz CurveA curve illustrating the degree of equality of income distribution in an economy. It plots thecumulative percentage of income received by cumulative shares of the population. Where dowe fare as a country on the Lorenz curve and what does it say about South Africa’s incomedistribution

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