Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 12, Problem 5SQ
To determine
The cumulative share of income earned by 60 percent of families.
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Students have asked these similar questions
8. Four students have yearly incomes of $5,000, $15,000, $20,000,
and $60,000.
a. Make a table of the Lorenz Curve and use the Trapezoidal Rule
with 4 trapezoids to find the area under the Lorenz Curve. Your
answer should be correct to 2 places after the decimal point.
The area under the Lorenz Curve is
b. Use the results of Part a to find the Gini Index. Your answer
should be correct to 2 places after the decimal point.
The Gini Index is
Share of Income
0.8
0.6
0.4
0.2
Ao
0.2
04
Perfect-Equality
Lorenz Curve
10
D=15
0.6
Actual
Lorenz Curve
0.8
B
7
C
can someone calculate the gini coefficent please? ASAP
When the Lorenz curve lies above thediagonal,a. the poorest 20 percent of the populationreceive more than 20 percent of income.b. the richest 20 percent of the populationreceive more than 20 percent ofincome.c. everyone receives the same income.d. the curve is wrong because it is impossible forthe graph to look like this.
Chapter 12 Solutions
Micro Economics For Today
Ch. 12.2 - Prob. 1YTECh. 12.2 - Prob. 2YTECh. 12.5 - Prob. 1.1YTECh. 12.5 - Prob. 2.1YTECh. 12 - Prob. 1SQPCh. 12 - Suppose each family in the United States earned an...Ch. 12 - Prob. 3SQPCh. 12 - Prob. 4SQPCh. 12 - Prob. 5SQPCh. 12 - Prob. 6SQP
Ch. 12 - Prob. 7SQPCh. 12 - Prob. 8SQPCh. 12 - Prob. 9SQPCh. 12 - Prob. 10SQPCh. 12 - Prob. 11SQPCh. 12 - Prob. 1SQCh. 12 - Prob. 2SQCh. 12 - Prob. 3SQCh. 12 - Prob. 4SQCh. 12 - Prob. 5SQCh. 12 - Prob. 6SQCh. 12 - Prob. 7SQCh. 12 - Prob. 8SQCh. 12 - Prob. 9SQCh. 12 - Prob. 10SQCh. 12 - Prob. 11SQCh. 12 - Prob. 12SQCh. 12 - Prob. 13SQCh. 12 - Prob. 14SQCh. 12 - Prob. 15SQCh. 12 - Prob. 16SQCh. 12 - Prob. 17SQCh. 12 - Prob. 18SQCh. 12 - Prob. 19SQCh. 12 - Prob. 20SQ
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Similar questions
- What is measured on the two axes of a Lorenz curve?arrow_forwardRedistribution of income occurs through the federal income tax and government antipoverty programs. Explain whether or not this level of redistribution is appropriate and whether more redistribution should occur.arrow_forward4Plz help4arrow_forward
- Figure 18-7 100 Income (cumulative percent) 80 72 60 48 40 882 20 12 0 20 40 60 80 Households (cumulative percent) 100 Figure 18-7 shows the Lorenz curve for a hypothetical country. Refer to Figure 18-7. The second highest 20 percent of households earn 42 percent of the society's total income. earn 28 percent of the society's total income. e earn 24 percent of the society's total income. earn 72 percent of the society's total income.arrow_forwardThe Lorenz curve represents the relationship between a. the cumulative percentage of households and the cumulative percentage of income b. income tax rates and income tax revenues c. child labor rates and the poverty levels d. income inequality and education level e. market structure and the number of firms in the marketarrow_forwardWhich of the following Lorenz curves represents the most equal distribution of income?arrow_forward
- In order to measure income inequality, economists look at how income is distributed in ... Group of answer choices a. quintiles b. degrees c. five percent brackets d. ten percent bracketsarrow_forwardExplain the Lorenz Curve.arrow_forwardWhat is the Lorenz curve and what does it illustrate? Are incomes distributed equally? What would happen if incomes were equal? Why do you think income distribution is so unequal? Identify and explain three reasons.arrow_forward
- Draw the line of equality. 100- Draw a Lorenz curve for the distribution of income and label it. >>> Reposition the label by clicking on the edge of the label box and dragging it. 80- Draw a Lorenz curve for the distribution of wealth and. Label it. 60- 40- A household's point in time. A household's is the value of the things that it owns at a 20- is the amount that the household receives over a given period of time. C OA. wealth; income B. estate; revenue OC. estate; salary OD. fortune; revenue Cumulative percentage of income and wealth 0+ 0 20 40 60 80 100 Cumulative percentage of households (100,0) >>> Draw only the objects specified in the question.arrow_forwardV3 Using diagrams, discuss the following aspects of income inequality. Draw two different Lorenz Curves, LCA & LCB, where the two curves cross. Discuss and compare the two in terms of the Top 1% Share.arrow_forward3. There are three agents, a, b, and c. Person a receives $500 in income, b receives $400, and c gets $100. How much income of the total income does the poorest 1/3 receive? How much does the bottom 2/3 receive? Graph the Lorenz Curve. Calculate area B. Calculate area A. What is the gini coefficient? Use a graph like the one below to draw a picture of the Lorenz curve and help in calculating areas A and B.arrow_forward
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