Question 4:a. Identify 3 main issues encountered when compiling the Multiple Poverty index and 3possible ways to overcome these issues.b. What is the Gini Coefficient and how is it useful for a Caribbean country of your choice.3 marksc. Using the following information provided in the table below, calculate the Gini-coefficient for Algura. 10 marksPopulation10Income per month2000per personTotal Population329600057151500d. Calculate the new Gini Coefficient for Algura when income changes as follows: 10.marksPopulationIncome per monthper personTotal Population10321200780005715900

Detailed explanation:Step by step calculations for answer (c) and (d) Case (c):Step 1: Calculate…

Answered: Question 4: a. Identify 3 main issues…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 43CTQ: Explain what the long- and short-term consequences are of not promoting equality or working to...

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Explain what the long- and short-termconsequences are of not promoting equality or workingto reduce poverty
Please answer correct explain please asap Don't answer by pen paper plz.
The following table shows the approximate income distribution for Peru, Bulgaria, and Lithuania in 2016. In particular, it shows the income shares of each fifth of the income distribution. Percentage Share, 2016 Percentage of Families Peru Bulgaria Lithuania Lowest fifth 4 9 7 Second-lowest fifth 8 14 12 Middle fifth 12 17 16 Second-highest fifth Highest fifth 20 22 22 56 38 43 has the most total income. On the following graph, plot the Lorenz curves for the three countries. Plot Peru's Lorenz curve using the green points (triangle symbol), Bulgaria's Lorenz curve using the blue points (circle symbol), and Lithuania's Lorenz curve using the purple points (diamond symbol). Be sure to plot the first point of each Lorenz curve at (0,0). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. CUMULATIVE PERCENTAGE OF MONEY INCOME graph.) 20 100 20 40 60 80 100 CUMULATIVE PERCENTAGE OF FAMILIES Peru Bulgaria Lithuania…
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
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.
The data suggests that global income inequality is greater in PPP terms than in nominal terms. is it true or false
Questions Explain three methods of measuring the income inequality of a nation? 1.kuznet ratio 2. Lorenz curve 3. Gini coefficient 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.…
2. Constructing a Lorenz curve from income shares data The following table shows the approximate income distribution for Peru, Bulgaria, and Lithuania in 2016. In particular, it shows the income shares of each fifth of the income distribution. Percentage Share, 2016 Percentage of Families Peru Bulgaria Lithuania Lowest fifth 4 9 7 Second-lowest fifth 8 14 12 Middle fifth 12 17 16 Second-highest fifth Highest fifth 20 22 22 56 38 43 has the most total income. On the following graph, plot the Lorenz curves for the three countries. Plot Peru's Lorenz curve using the green points (triangle symbol), Bulgaria's Lorenz curve using the blue points (circle symbol), and Lithuania's Lorenz curve using the purple points (diamond symbol). Be sure to plot the first point of each Lorenz curve at (0,0). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. CUMULATIVE PERCENTAGE OF MONEY INCOME graph.) 100 20 40 60 80 100…
1. Below is a hypothetical breakdown of the income distribution in a country. Use those calculate what should be graphed on the Lorenz curve and then sketch a Lorenz curve for those given numbers. Using that Lorenz curve show how a Gini coefficient would be calculated and explain what the values of the Gini coefficient mean. (you do not have to calculate the Gini, just describe how you could do so)? Quintile Bottom 20% Lower Middle 20% Middle 20% Upper Middle 20% Top 20% Percent of GDP Received 16 20 $2
The following table shows income distribution data for 2015 and 2020 from the World Bank in Colombia and Dominican Republic respectively. Quintile Colombia Lowest 20% Second 20% Third 20% Fourth 20% Highest 20% a. 2015 3.8 7.9 12.5 20 55.8 2020 2.8 7.4 11.9 19.6 58.3 Dominican Republic 2020 6.2 10.7 14.9 21.7 46.5 2015 5 9.3 13.8 20.9 51 Given the adoption of the Sustainable Development Goals (SDGs) by the UN in September 2015, what can you say about the effect on relative income inequality in these two countries? Can it be illustrated graphically? b. Consider a 12-person economy where the individuals are employed equally across the sectors. If the modern urban wage = £8, the informal urban wage = £3, and the tradition rural income = £1, what is the squared poverty gap index (P₂) given that the poverty line = £1.25? Suppose that rural income now rises to £2, other things being equal, how would you characterise and show this type of growth?
-Suppose Country A and Country B have the followingpopulation and income distributions: Draw a Lorenz Curve for each country. Additionally, comment on which country ismore unequal.
From comparisons of income distribution studies over time, it generally appears that A. income is more evenly distributed in the richer nations. B. there are few variations in income distribution among developed and developing nations. C. comparisons over time demonstrate that income redistribution changes relatively quickly, so older data have limited value. D. the middle quintiles in most nations are growing at the expense of the bottom 20 percent. E. income inequality decreases in the early stages of development and reverses in the later stages.

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