Read the news clip, then answer the following question.Between 1985 and 2007, China's Lorenz curveCOA. became a horizontal lineOB. moved toward the line of equalityOC. moved further away from the line of equalityOD. moved further away from the line of equality, whichresulted in the Lorenz curve for the rest of theworld moving toward the line of equalityOE. became equal to the line of equalityŌ7O*8ORich-poor gap worries Chinese plannersIn 1985, urban Chinese earned 1.9 times as muchas people in the countryside, which is home to 60percent of the population. By 2007, they earned 3.3times as much according to the United Nations.Source: The New York Times, November 22, 2008 r9NextitdurelesSIOrien1 C++Camp.NS 11Codinghool StMihailescNS 2 yeaython-Frers [TutoriCamp.org eES

Lorenz curve is used as a measure of inequality, graphically seen as thr area or deviation between…

Read the news clip, then answer the following question. Between 1985 and 2007, China's Lorenz curve O A. became a horizontal line OB. moved toward the line of equality OC. moved further away from the line of equality OD. moved further away from the line of equality, which resulted in the Lorenz curve for the rest of the world moving toward the line of equality OE. became equal to the line of equality Rich-poor gap worries Chinese planners In 1985, urban Chinese earned 1.9 times as much as people in the countryside, which is home to 60 percent of the population. By 2007, they earned 3.3 times as much according to the United Nations. Source: The New York Times, November 22, 2008 it du re les SI Orien 1 C++ Camp. NS 1 Coding hool St Mihailesc

Read the news clip, then answer the following question. Between 1985 and 2007, China's Lorenz curve O A. became a horizontal line OB. moved toward the line of equality OC. moved further away from the line of equality OD. moved further away from the line of equality, which resulted in the Lorenz curve for the rest of the world moving toward the line of equality OE. became equal to the line of equality Rich-poor gap worries Chinese planners In 1985, urban Chinese earned 1.9 times as much as people in the countryside, which is home to 60 percent of the population. By 2007, they earned 3.3 times as much according to the United Nations. Source: The New York Times, November 22, 2008 it du re les SI Orien 1 C++ Camp. NS 1 Coding hool St Mihailesc

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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8. Four students have yearly incomes of $5,000, $15,000, $20,000, and $60,000. a. Make a table of the Lorenz Curve and use the Trapezoidal Rule with 4 trapezoids to find the area under the Lorenz Curve. Your answer should be correct to 2 places after the decimal point. The area under the Lorenz Curve is b. Use the results of Part a to find the Gini Index. Your answer should be correct to 2 places after the decimal point. The Gini Index is
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.
What is the Lorenz curve and what does it illustrate? Are incomes distributed equally? What would happen if incomes were equal? Why do you think income distribution is so unequal? Identify and explain three reasons.
Suppose there are 3 households in each society. This table shows income for poor, middle, and rich household, average income for all households, and the Gini coefficient for 4 societies. Based on this table, which of the following is true? (Select all that apply.) Society A Society B Society C Society D оооо Household Income Poor Middle Household Household 20,000 15,000 25,000 30,000 40,000 40,000 40,000 40,000 Rich Household 75,000 100,000 200,000 10,000,000 Society D has the most unequal income distribution. Society A has the most equal income distribution. Society D has the highest overall average income. Society A has the lowest overall average income. Average Income 45,000 51,667 88,333 3,356,667 Gini coefficient .27 .37 .44 .66
According to Andrew Carnegie, in his essay "Wealth", where does inequality of wealth come from, is it a problem or not, and how should it be solved?
K In recent years, as the gap between the rich and the poor has increased, the Lorenz curve has O A. shifted away from the line of equality OB. shifted closer to the line of equality O c. not changed, but there has been a movement down along it O D. not changed, but there has been a movement up along it Ne
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…