Using data from a nation's census, an economist produced the following Lorenz curves for the distribution of that nation's income in 1962 and 1972. f(x) = 3x +2 x2 5 5 Lorenz curve for 1962 g(x) = 2 x+ 3 x2 5 5 Lorenz curve for 1972 Find the Gini index of income concentration for each Lorenz curve and interpret the results. Identify the integrand for the computation of the Gini index for 1962 and 1972. The Gini index for 1962 is given by2 ∫ 0 1 ....... dx and the Gini index for 1972 is given by 2 ∫ 01 .......... dx.

Using data from a nation's census, an economist produced the following Lorenz curves for the distribution of that nation's income in 1962 and 1972. f(x) = 3x +2 x2 5 5 Lorenz curve for 1962 g(x) = 2 x+ 3 x2 5 5 Lorenz curve for 1972 Find the Gini index of income concentration for each Lorenz curve and interpret the results. Identify the integrand for the computation of the Gini index for 1962 and 1972. The Gini index for 1962 is given by2 ∫ 0 1 ....... dx and the Gini index for 1972 is given by 2 ∫ 01 .......... dx.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter28: The Distribution Of Income And Poverty

Section: Chapter Questions

Problem 2QP

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Question

Using data from a nation's census, an economist produced the following Lorenz curves for the distribution of that nation's income in 1962 and 1972.

f(x)	=	3x +2 x² 5 5	Lorenz curve for 1962
g(x)	=	2 x+ 3 x² 5 5	Lorenz curve for 1972

Find the Gini index of income concentration for each Lorenz curve and interpret the results.

Identify the integrand for the computation of the Gini index for 1962 and 1972.

The Gini index for 1962 is given by2 ∫ ₀¹ ....... dx
and the Gini index for 1972 is given by 2 ∫ ₀¹.......... dx.

Definition Definition Monetary value of all goods and services produced in an economy during a financial year. National income also refers to the total income earned by the factors of production during a financial year.

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