Q1-. Consider three regions of a country with the following hypothetical income distribution data for fourequal segments of the population.Population %Region ARegion BRegion Cbottom 25%0.050.100.022nd 25%0.150.150.103rd 25%0.300.200.25top 25%0.500.550.63a) Draw the Lorenz curves for the three regions.b) What can you conclude about the level of inequality among the three regions from the graph.List the Regions by order of inequality (from lowest to highest)Q2-. Explain why a Lorenz curve can never lie above the 45° line. Under what circumstance wouldthe Lorenz curve lie above the 45° lineQ3-. Using a Lorenz curve diagram, explain how to calculate the Gini coefficient

Here is the Lorenz curve plot for the three regions, showing the income distribution across…

Answered: Q1-. Consider three regions of a…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Income Inequality And Poverty

Section: Chapter Questions

Problem 2CQQ

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If a country had perfect income equality what would the Lorenz curve look like?
Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?
Question 12 The following income distribution data are for Lesotho: Quintile Lowest 10% Lowest 20% Second quintile Third quintile Fourth quintile Highest 20% Percent Share 2.2% 3.0% 7.2% 12.5% 21.0% 56.3% Explain how to find the Gini coefficient, graphically. (Hint: You might want to use labels on your graph). You should be able to draw a graph on your computer, save it as a graph, picture, or document, and upload that graph, picture, or document to your answer box. If you cannot do that, you can always draw a graph on paper, take a picture, and upload the picture to your answer box.
100% Cumulative percentage of income 90% -Jарan 80% --- Portugal 70% 60% 50% 40% 30% 20% 10% 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Cumulative percentage of households Figure 5 Lorenz curves for Japan and Portugal Examine the Lorenz Curves for Japan and Portugal shown in Figure 5. Which of the following statements are correct? Select one or more answers. Select one or more: O The top quintile (top 20%) of households in Portugal have a higher share of total income than the top quintile (top 20%) of households in Japan. The bottom decile (bottom 10%) of households in Japan have a lower share of total income than the bottom decile (bottom 10%) of households in Portugal. Portugal will have a lower Gini coefficient than Japan. Japan has a lower level of income inequality than Portugal.
Question 11 The following income distribution data are for Lesotho: Quintile Lowest 10% Lowest 20% Second quintile Third quintile Fourth quintile Highest 20% Percent Share 2.2% 3.0% 7.2% 12.5% 21.0% 56.3% Carefully graph the Lorenz curve, labeling the axes. You should be able to draw a graph on your computer, save it as a graph, picture, or document, and upload that graph, picture, or document to your answer box. If you cannot do that, you can always draw a graph on paper, take a picture, and upload the picture to your answer box.
Canada had the following distribution of Income after taxes in 2006 Based on the information in the tables, which one is the correct Gini coefficient of income inequality? Deciles cumulative share of income Lorenz curve for after tax income in Canada 0% (2006) 1 0% 1 2 2%| 3 6% 0.8 4 11% 0.6 18% 0.4 26% 0.2 37% 50% 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 9 67% share of population 10 100% cumulative share of income equidistribution line O a. 0.47 O b. 0.43 O c. 0.42 O d. 0,44 O e. 0.23 O share of income
Based on the table given What are the main drivers of overall income inequality? How is that answer inuenced by the shares of each source in overall income? Please answer fast.
The values in the table reflect the percentages of pre-tax-and transfer income. 22. Refer to Table 20-1. The trend in income inequality from 1980 to 2010 is 23. Refer to Table 20-1. If the distribution of income were completely equal, what percentage of income would the bottom fifth of the population earn? 24. A government policy aimed at protecting people against the risk of adverse events is called
5- Calculate Gini coefficient for a country with the following deciles in income share data: Country X: 30 (richest quantile) 20 What is the area under the Lorenz Curve? Please show your diagram. 10 5 5 5 5 3 2
quintile cumulativeshare of households a cumulative share of income b cumulative share of income poorest 10.5 2.5 2nd 13.2 6.8 middle 21.6 13.9 4th 26.4 24.2 richest 28.3 52.6
2. Draw a complete and dearly labeled Lorenz Curve using the information below. Lowest 2nd 3rd 5th Quantile Quantile Quantile Quantile Quantile 3.6% 8.9% 14.8% 23% 49.8%
Indicators of income inequality and poverty Country Gini coefficient Australia Belgium Canada France Italy Japan Portugal Spain .336 259 .324 .293 .337 .329 .353 .317 Ratio of income at 90th percentile to 10th percentile 4.5 3.3 4.2 3.4 4.3 5.0 4.9 4.6 Poverty rates % households below 50% of average household income 14.6 9.4 12.0 7.2 11.4 15.7 11.9 14.0 Source: OECD 2011 The table shows some selected indicators on income inequality and poverty. Based on these data, which of the following statements are correct? Select one or more answers. Select one or more: The Gini coefficient for Canada means the bottom 10% of households have a greater total income than the bottom 10% of households in Italy. France has a lower overall level of income inequality than Japan. The ratio between households at the 90th percentile and households at the 10th percentile suggests inequality is greater in Australia than in Belgium. Spain has a lower poverty rate than Portugal.

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