QUESTION 43 The Gini coefficient can be approximated from the Lorenz curve by the g=A/(A+B), where A is the area between the Lorenz curve and the 45-degree line and A +Bis the area under the 45-degree line. Consider a population with three members and an aggregate income of 100. Which of the following statements are correct? O When the incomes are (50, 50, 0), the approximated Gini coefficient is 0.5. When the incomes for the thre members are (100/3, 100/3, 100/3), the approximate Gini coefficient is 0. O When the incomes are (100, 0, 0), the approximated Gini coefficient is 1. O A gini coefficient of 1 implies complete equality.
QUESTION 43 The Gini coefficient can be approximated from the Lorenz curve by the g=A/(A+B), where A is the area between the Lorenz curve and the 45-degree line and A +Bis the area under the 45-degree line. Consider a population with three members and an aggregate income of 100. Which of the following statements are correct? O When the incomes are (50, 50, 0), the approximated Gini coefficient is 0.5. When the incomes for the thre members are (100/3, 100/3, 100/3), the approximate Gini coefficient is 0. O When the incomes are (100, 0, 0), the approximated Gini coefficient is 1. O A gini coefficient of 1 implies complete equality.
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 17SQ
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![QUESTION 43
The Gini coefficient can be approximated from the Lorenz curve by the g=A/(A+B), where A is the area between the Lorenz curve and
the 45-degree line and A +B is the area under the 45-degree line. Consider a population with three members and an aggregate income
of 100. Which of the following statements are correct?
O When the incomes are (50, 50, 0), the approximated Gini coefficient is 0.5.
When the incomes for the thre members are (100/3, 100/3, 100/3), the approximate Gini coefficient is 0.
O When the incomes are (100, 0, 0), the approximated Gini coefficient is 1.
O A gini coefficient of 1 implies complete equality.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0699751a-4ec8-425b-ba50-e4551666f002%2Fbd08fba1-0768-4aed-a82b-dde52ae8eb3a%2F07wvcbv_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 43
The Gini coefficient can be approximated from the Lorenz curve by the g=A/(A+B), where A is the area between the Lorenz curve and
the 45-degree line and A +B is the area under the 45-degree line. Consider a population with three members and an aggregate income
of 100. Which of the following statements are correct?
O When the incomes are (50, 50, 0), the approximated Gini coefficient is 0.5.
When the incomes for the thre members are (100/3, 100/3, 100/3), the approximate Gini coefficient is 0.
O When the incomes are (100, 0, 0), the approximated Gini coefficient is 1.
O A gini coefficient of 1 implies complete equality.
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