Answered: Use the two different distributions of…

Use the two different distributions of income in the table below to answer the questions f follow. a. Use the grid below and graph the two Lorenz curves. b. Which curve has a more equal 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 8P

See similar textbooks

Related questions

Q: Economic inequality arises from all of the following except O A. a shortage of high-skilled labor B.…

A: Economic inequality is the unequal distribution or discrimination among various groups of society.…

Q: D Question 24 Income inequality is indicated by a Lorenz curve that: approaches the vertical axis.…

A: Income inequality shows the differences in income distribution among households of a society.

Q: Table: Income Distribution in Four Countries provides recent data from the World Bank on the…

A: Income distribution refers to the way total income in a country or a population is distributed among…

Q: 1. See the income distribution of two countries below: Population Poorest 20% Next 20% Next 20% Next…

A: The income level differs from one economic segment to another. If an economy experiences differences…

Q: The following table summarizes the income distribution for the town of Perkopia, which has a…

A: The objective of the question is to understand the income distribution in Perkopia in 2016,…

Q: What is a "quintile"? Provide and explain one example of how this concept is used in the discussion…

A: The first quintile represents the usual lowest fifth of the data (1 percent to 20 percent); the…

Q: Indicators of income inequality and poverty Country Gini coefficient Ratio of income at Poverty…

A: The "Gini coefficient," which is directly linked to the Lorenz curve, is the most commonly used…

Q: Access to Education and Poverty: 2005 Data IG ge Sompletion by Income status and sth grade test…

A: Given the graphs, it is clearly observed that people with high score in all income groups have…

Q: The following figure shows the relationship befween employment and monthly salary in the periods…

A: From 1968 to 1976, there was a simultaneous increase in wages and employment. Equilibrium in the…

Q: . Consider two communities. In one community,ten families have incomes of $100,000 each and…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Define the term median income?

A: The amount of income that divides a population into two different equal groups, half having an…

Q: A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000,…

A: Since you have posted a question with multiple sub parts, as per the policy, we will answer first…

Q: B C D E 20% 40% 60% 80% 100% suppose that A=100%, b=48%, c=23%, D=9% and E=2% What is the income…

A: The Lorenz curve is a graphical representation of income or wealth distribution within a population.…

Q: If poverty is defined in terms, economic growth eventually decreases the number of officially…

A: The situation where some people have comparatively lower income or wealth than the average or…

Q: . Income inequality and the poverty rate The following table summarizes the income distribution for…

A: Lorenz Curve: The Lorenz curve is the graphical representation of the income inequality in the…

Q: Suppose an economy is composed of 10 individuals. The following table shows their annual income in…

A: The expression income generally implies the amount of money, property, and other transfers of value…

Q: What does the Canadian poverty rate measure? the number of people whose annual household income is…

A: The problem is to determine what the Canadian poverty rate measures

Question

quintile	cumulativeshare of households	a	cumulative share of income	b	cumulative share of income
poorest		10.5		2.5
2nd		13.2		6.8
middle		21.6		13.9
4th		26.4		24.2
richest		28.3		52.6

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What is measured on the two axes of a Lorenz curve?
What goods and services would you include in an estimate of the basic necessities for a family of four?
Which set of policies is more likely to cause a tradeoff between economic output and equality: policies of redistribution policies aimed at the ladder of opportunity? Explain how the production possibility frontier tradeoff between economic equality and output might look in each case.
Here is one hypothesis: A well-funded social safety net can increase economic equality but will reduce economic output. Explain why this might be so, and sketch a production possibility curve that shows this tradeoff.
Summarize what has happened tothe incidence of poverty since 1960, anddetermine when and why the greatestprogress was made in reducing poverty (InCome Differences) List some reasons why householdincomes differ. Which factors are the mostimportant?
The graph shows the Lorenz curve for income. In the graph, the second poorest 20 percent of households earn the income certesa OA. 20 B. 5 OC. 9 OD. 14 Click to select your answer Forencio Gasto eatment D KIDEES AUNT DONT CALL HERI WILL TEXT HER AND FIND OUT 18 App XX percent of 18 Appl 100- ASUS 90- 80+ 70- 60- 50- 40- 30- 20- 10+ Tamhner, Rasha Pel Other a Rejane D Stretchmans DI2 HBL) 32-428 10650 Cumulative percentage of income Cumulative percentage of households do
4Plz help4
nd Study Tools tions ccess Tips cess Tips Back 2. Constructing a Lorenz curve from income shares data The following table shows the approximate income distribution for Colombia, Ukraine, and Turkey in 2011. In particular, it shows the income shares of each quintile of the income distribution. Income Group Lowest quintile Second quintile Third quintile Fourth quintile Highest quintile Percentage of Total Income, 2011 Turkey Colombia Ukraine 2 9 5 6 14 10 17 14 21 50 18 63 22 38 has the most total income. On the following graph, plot the Lorenz curves for the three countries. Plot Colombia's Lorenz curve using the green points (triangle symbol), Ukraine's Lorenz curve using the blue points (circle symbol), and Turkey's Lorenz curve using the purple points (diamond symbol) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.
A5 South Africa's top 10% of earners contribute almost half of all revenue, and the richest 10% of its residents holds 85.6% of net wealth, according to the OECD, which sees scope for the tax system to be used more to reduce inequality. Based on the above paragraph, which of the following statements is INCORREC A. South African 's bottom 90%of income earners contribute allof to the revenu B. South Africa's income inequality levels are very hig C. South Africa' s income inequality levels are very lo D. South Africa's income contribution is equalwheT
IM R %24 How does progressive taxation and redistribution policies affect the Lorenz curve and Gini coefficient? O The Lorenz curve becomes less curved and the Gini coefficient increases. O The Lorenz curve becomes less curved and the Gini coefficient decreases. O The Lorenz curve becomes more curved and the Gini coefficient increases. O The Lorenz curve becomes more curved and the Gini coefficient decreases. 10:44 PM earch 13 12/12/2021 ins prt sc f12 delete 114 144 Po backspace lock 4. 7. home enter 7. 4. K. pause 1 shift ctrl
This chapter discusses the importance of economicmobility.a. What policies might the government pursue toincrease economic mobility within a generation?b. What policies might the government pursue toincrease economic mobility across generations?c. Do you think we should reduce spending oncurrent welfare programs to increase spending onprograms that enhance economic mobility? Whatare some of the advantages and disadvantages ofdoing so?
K A Lorenz curve plots the A. percentage of total income received by each quintile against the percentage of households in the quintile OB. trend in the cumulative percentage of income received by each quintile against trend in the number of households O C. average income received by each quintile against the number of households in the quintile O D. cumulative percentage of income against the cumulative percentage of households Next