2.2= XSuppose that the Lorenz Curve for country A is given by yAand for country B is yBmine which of the two countries has greater inequality in its income-0.3x2 + 0.7x. Use the Gini index to deter-distribution.

In this question the Lorentz curve is given for the two different countries, the Lorentz curve…

Suppose that the Lorenz Curve for country A is given by YA = x².2 and for country B is yB = 0.3x² + 0.7x. Use the Gini index to deter- mine which of the two countries has greater inequality in its income distribution.

Suppose that the Lorenz Curve for country A is given by YA = x².2 and for country B is yB = 0.3x² + 0.7x. Use the Gini index to deter- mine which of the two countries has greater inequality in its income distribution.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter17: Income, Poverty, And Health Care

Section: Chapter Questions

Problem 2P

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Question

2.2
= X
Suppose that the Lorenz Curve for country A is given by yA
and for country B is yB
mine which of the two countries has greater inequality in its income
-0.3x2 + 0.7x. Use the Gini index to deter-
distribution.

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