ollowing 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 e, and Country Z's Lorenz curve is shown in green. in 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 try 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 try Z's Lorenz curve.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Based on the graph, the Gini coefficient for Country X is given by
Which of the following countries has the highest Gini coefficient?
Country V
Country Z
Ⓒ Country X
1 / (I + II + III+IV)
(1+11)/(1+ II + III+IV)
I
1/ (II+III+IV)
1 / (1+ II + III+IV)
Transcribed Image Text:Based on the graph, the Gini coefficient for Country X is given by Which of the following countries has the highest Gini coefficient? Country V Country Z Ⓒ Country X 1 / (I + II + III+IV) (1+11)/(1+ II + III+IV) I 1/ (II+III+IV) 1 / (1+ II + III+IV)
6. Comparing Gini coefficients of different countries
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
purple, 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.
100
CUMULAT ME PERCENTAGE OF INCOME
8
8
0
Country X
Country Y
III
Country Z
IV
80
20
40
60
CUMULATIVE PERCENTAGE OF HOUSEHOLDS
100
Transcribed Image Text:6. Comparing Gini coefficients of different countries 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 purple, 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. 100 CUMULAT ME PERCENTAGE OF INCOME 8 8 0 Country X Country Y III Country Z IV 80 20 40 60 CUMULATIVE PERCENTAGE OF HOUSEHOLDS 100
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