The Philippines has the highest Gini coefficient among ASEAN's six largest economies at 41.58%. Suppose the equation of the Lorenz curve of the Philippines is L(x) = xm²+2m-1 (a) If m >0, find the value of m. (b) Thailand and Malaysia's Gini indices are 34.55% and 39.37%, respectively. In one coordinate plane, draw a possible sketch of the Lorenz curves of the Philippines, Thailand, and Malaysia. Label your graphs clearly and explain how you determined how each graph is drawn, and how each one compares with the others.
The Philippines has the highest Gini coefficient among ASEAN's six largest economies at 41.58%. Suppose the equation of the Lorenz curve of the Philippines is L(x) = xm²+2m-1 (a) If m >0, find the value of m. (b) Thailand and Malaysia's Gini indices are 34.55% and 39.37%, respectively. In one coordinate plane, draw a possible sketch of the Lorenz curves of the Philippines, Thailand, and Malaysia. Label your graphs clearly and explain how you determined how each graph is drawn, and how each one compares with the others.
Chapter1: Making Economics Decisions
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Transcribed Image Text:The Philippines has the highest Gini coefficient among ASEAN's six largest economies at 41.58%.
Suppose the equation of the Lorenz curve of the Philippines is
L(x) = xm²+2m-1
(a) If m >0, find the value of m.
(b) Thailand and Malaysia's Gini indices are 34.55% and 39.37%, respectively. In one coordinate plane,
draw a possible sketch of the Lorenz curves of the Philippines, Thailand, and Malaysia. Label your graphs
clearly and explain how you determined how each graph is drawn, and how each one compares with the
others.
(c) Explain what the Gini index values indicate about the Philippines, Thailand, and Malaysia.
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