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The following income distribution data are for Brazil. Quintile Percent Share Lowest 20% 3.0% Second quintile 6.9% Third quintile 11.8% Fourth quintile 19.6% Highest 20% 58.7% (a) Carefully graph the Lorenz curve, labeling the axes. (b) Explain how to find the Gini coefficient, graphically. (c) Brazil's national income is about $300 billion. What is the approximate dollar income of the bottom 20%? Bottom 40%? (d) Suppose one percent of national income was transferred from the richest 20% of households to the poorest 20% of households. Show the effect on relative inequality. Is income distribution more equal or more unequal? How much does the poorest 20% of households have now? (e) Brazil's population is approximately 150 million. Suppose that each household makes the average income for its quintile. What is the level of poverty if the poverty line is $400 per capita? Calculate the number of poor, headcount index, TPG, APG and AIS. F2 3 £ ◄ Previous 80 F3 F4 $ # 4 ل A DII D F5 F6 F7 F8 F9 D % & 5 6 88 1 ( ) 7 8 9 0 F10

The following income distribution data are for Brazil. Quintile Percent Share Lowest 20% 3.0% Second quintile 6.9% Third quintile 11.8% Fourth quintile 19.6% Highest 20% 58.7% (a) Carefully graph the Lorenz curve, labeling the axes. (b) Explain how to find the Gini coefficient, graphically. (c) Brazil's national income is about $300 billion. What is the approximate dollar income of the bottom 20%? Bottom 40%? (d) Suppose one percent of national income was transferred from the richest 20% of households to the poorest 20% of households. Show the effect on relative inequality. Is income distribution more equal or more unequal? How much does the poorest 20% of households have now? (e) Brazil's population is approximately 150 million. Suppose that each household makes the average income for its quintile. What is the level of poverty if the poverty line is $400 per capita? Calculate the number of poor, headcount index, TPG, APG and AIS. F2 3 £ ◄ Previous 80 F3 F4 $ # 4 ل A DII D F5 F6 F7 F8 F9 D % & 5 6 88 1 ( ) 7 8 9 0 F10

Principles of Microeconomics
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Income Inequality And Poverty
Section: Chapter Questions
Problem 2CQQ
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The following income distribution data are for Brazil. Quintile Percent Share Lowest 20% 3.0% Second quintile 6.9% Third quintile 11.8% Fourth quintile 19.6% Highest 20% 58.7% (a) Carefully graph the Lorenz curve, labeling the axes. (b) Explain how to find the Gini coefficient, graphically. (c) Brazil's national income is about $300 billion. What is the approximate dollar income of the bottom 20%? Bottom 40%? (d) Suppose one percent of national income was transferred from the richest 20% of households to the poorest 20% of households. Show the effect on relative inequality. Is income distribution more equal or more unequal? How much does the poorest 20% of households have now? (e) Brazil's population is approximately 150 million. Suppose that each household makes the average income for its quintile. What is the level of poverty if the poverty line is $400 per capita? Calculate the number of poor, headcount index, TPG, APG and AIS. F2 3 £ ◄ Previous 80 F3 F4 $ # 4 ل A DII D F5 F6 F7 F8 F9 D % & 5 6 88 1 ( ) 7 8 9 0 F10
Transcribed Image Text:The following income distribution data are for Brazil. Quintile Percent Share Lowest 20% 3.0% Second quintile 6.9% Third quintile 11.8% Fourth quintile 19.6% Highest 20% 58.7% (a) Carefully graph the Lorenz curve, labeling the axes. (b) Explain how to find the Gini coefficient, graphically. (c) Brazil's national income is about $300 billion. What is the approximate dollar income of the bottom 20%? Bottom 40%? (d) Suppose one percent of national income was transferred from the richest 20% of households to the poorest 20% of households. Show the effect on relative inequality. Is income distribution more equal or more unequal? How much does the poorest 20% of households have now? (e) Brazil's population is approximately 150 million. Suppose that each household makes the average income for its quintile. What is the level of poverty if the poverty line is $400 per capita? Calculate the number of poor, headcount index, TPG, APG and AIS. F2 3 £ ◄ Previous 80 F3 F4 $ # 4 ل A DII D F5 F6 F7 F8 F9 D % & 5 6 88 1 ( ) 7 8 9 0 F10
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