Share of Total Income (%) Personal Income Individuals (money units) Quintiles Deciles 0.8 1.0 1.4 1.8 1.9 2.0 2.4 2.7 2.8 3.0 3.4 3.8 4.2 4.8 5.9 7.1 10.5 12.0 13.5 15.0 100.0 2 3 4 5 1.8 5 3.2 3.9 5.1 9. 10 11 12 13 14 15 16 17 18 19 20 Total (national income) 5.8 13 7.2 9.0 22 13.0 22.5 51 100 28.5 100.0 9,

Share of Total Income (%) Personal Income Individuals (money units) Quintiles Deciles 0.8 1.0 1.4 1.8 1.9 2.0 2.4 2.7 2.8 3.0 3.4 3.8 4.2 4.8 5.9 7.1 10.5 12.0 13.5 15.0 100.0 2 3 4 5 1.8 5 3.2 3.9 5.1 9. 10 11 12 13 14 15 16 17 18 19 20 Total (national income) 5.8 13 7.2 9.0 22 13.0 22.5 51 100 28.5 100.0 9,

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

4. An economist produced the following Lorenz curves for the current income distribution and the projected income distribution 10 years from now in a certain country: Current Lorenz curve: f(x) = 0.15x+0.85x Projected Lorenz curve: g(x) = x'6 Compute the Gini index of income concentration ( to 2 decimal places ) for the current and projected curves. What can you say about the distribution of income 10 years from now? Is it more equitable or less?
Figure it out •Which country is the most equal? • A B • C • D FIGURE 5.4 Four Possible Lorenz Curves Percentage of income 100 0 7 D Percentage of population 100
Ma1. Using diagrams, discuss the following aspects of income inequality. Draw two different Lorenz Curves, LCA & LCB, where the two curves cross. Discuss and compare the two in terms of the Top 1% Share.
13. The Lorenz curve A) has non-decreasing gradient B) cannot have straight line segments C) none of the answers D) can cross the 45 degree line
Using the above Lorenz Curve, if Economy A decreased the progressivity of income taxes, then Economy A's Lorenz Curve would shift closer to the 45-degree reference line. shift closer to Economy B's Lorenz Curve. not shift at all
a) With the following data draw a Lorenz Curve, putting labels on the graph and writing out data point values. Explain what the Lorenz Curve illustrates, and what the results mean. b) Now explain how one gets the Gini Coefficient from the Lorenz Curve, and what information the coefficient provides.
Using the above Lorenz Curve, answer the following questions. . . Approximately what percentage of the income does the richest 20% of Country A earn? Approximately what percentage of the income does the poorest 20% of Country B earn? If the government of Country B increased the progressivity of income taxes, would its Lorenz Curve move closer to the 45-degree reference line, closer to Country A's Lorenz Curve, or not move at all?
Use the data from the table below to construct a Lorenz curve. Income Shares in the United States Lowest 20% Second Lowest 20% Third 20% Fourth 20% Highest 20% 5.2 10.3 15.3 22.4 46.9
1. Define the concept of absolute poverty and Identify FOUR (4) measures undertaken by the government to eradicate rural poverty.