Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 18, Problem 4QE
(a)
To determine
The Lorenz curves of different countries.
(b)
To determine
The country that has the most equal distribution of income.
(c)
To determine
The country that has the least equal distribution of income.
(d)
To determine
The country that has the most progressive tax system.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
I'm not sure if I am answering this question correctly, or how to graph it.
The table shows the distribution of personal income in the United States in 2016.
Percentage of
total income
Households
Poorest 20 percent
3.1
Second 20 percent
Third 20 percent
Fourth 20 percent
Richest 20 percent
8.2
14.3
23.2
51.2
For all U.S. households to receive an equal share of income, what percentage of total income would the poorest 20 percent of households have to receive from higher-income groups? What percentage would the second poorest
have to receive?
>>> Answer to 1 decimal place.
The poorest 20 percent of households would have to receive
percent.
The second poorest 20 percent of households have to receive
percent.
Explain how our economic transition is affecting the national income distribution.
Chapter 18 Solutions
Microeconomics
Ch. 18.1 - Prob. 1QCh. 18.1 - Prob. 2QCh. 18.1 - Prob. 3QCh. 18.1 - Prob. 4QCh. 18.1 - Prob. 5QCh. 18.1 - Prob. 6QCh. 18.1 - Prob. 7QCh. 18.1 - Prob. 8QCh. 18.1 - Prob. 9QCh. 18.1 - Prob. 10Q
Ch. 18 - Prob. 1QECh. 18 - Prob. 2QECh. 18 - Prob. 3QECh. 18 - Prob. 4QECh. 18 - Prob. 5QECh. 18 - Prob. 6QECh. 18 - Prob. 7QECh. 18 - Prob. 8QECh. 18 - Prob. 9QECh. 18 - Prob. 10QECh. 18 - Prob. 11QECh. 18 - Prob. 12QECh. 18 - Prob. 13QECh. 18 - Prob. 1QAPCh. 18 - Prob. 2QAPCh. 18 - Prob. 3QAPCh. 18 - Prob. 4QAPCh. 18 - Prob. 5QAPCh. 18 - Prob. 1IPCh. 18 - Prob. 2IPCh. 18 - Prob. 3IPCh. 18 - Prob. 4IPCh. 18 - Prob. 5IPCh. 18 - Prob. 6IPCh. 18 - Prob. 7IPCh. 18 - Prob. 8IPCh. 18 - Prob. 9IP
Knowledge Booster
Similar questions
- Which of the following is most likely to make a country’s income distribution more equal? a. Establishing a national sales tax on food and clothing b. Establishing a progressive income tax system c. Eliminating excise taxes on luxury goods d. Proportionally decreasing the tax rate for all income groups e. Reducing the subsidy to educationarrow_forwardSuppose country A has five families. Their incomesare $10,000, $20,000, $30,000, $40,000, and $50,000.What is the average income of families.arrow_forwardWhat was the ratio of per capita income in each of the following countriesto that in the United States in the year 2014. Ethiopia, Mexico, India,and Japan?arrow_forward
- Consider the following distribution of income in a 12-person economy. (1.1, 1.5, 1.5, 2, 2, 2, 2, 3, 3, 3, 3). Calculate the P₂ FGT poverty measure assuming that the poverty line is 1.8 (Round to 3 decimal places)arrow_forwardGDP per capita is an indicator that tells us the whole picture about income inequality and income distribution. Group of answer choices True Falsearrow_forwardDescribe the concept poverty line in detailarrow_forward
- What is poverty and why do we need to measure poverty in the country?arrow_forwardThe data in the table characterizes the income distribution for a country. What percentage of the total population is categorized as belonging to the second quintile? Give your responses as whole numbers. Income category Share of income (%) Cumulative share of income (%) first quintile 7.0 --- second quintile 9.0 16.0 third quintile --- 35.0 fourth quintile 25.0 --- fifth quintile 40.0 --- percentage of population in second quintile: % What percentage of the total income for the country is earned by the third quintile? percentage earned by the third quintile: % What is the cumulative share of income earned by the poorest 80% of the population? percentage earned by the poorest 80%: %arrow_forwardQuestion 14 The following income distribution data are for Lesotho: Quintile Percent Share Lowest 10% 2.2% Lowest 20% 3.0% Second quintile 7.2% Third quintile 12.5% Fourth quintile 21.0% Highest 20% 56.3% Lesotho's national income is about $1.69 billion. Lesotho's population is approximately 2 million. Suppose that each household (which consists of one person) makes the average income for its quintile. What is the poverty headcount if the poverty line is $20 per capita?arrow_forward
- The following table shows income distribution data for 2015 and 2020 from the World Bank in Colombia and Dominican Republic respectively. Quintile Colombia Lowest 20% Second 20% Third 20% Fourth 20% Highest 20% a. 2015 3.8 7.9 12.5 20 55.8 2020 2.8 7.4 11.9 19.6 58.3 Dominican Republic 2020 6.2 10.7 14.9 21.7 46.5 2015 5 9.3 13.8 20.9 51 Given the adoption of the Sustainable Development Goals (SDGs) by the UN in September 2015, what can you say about the effect on relative income inequality in these two countries? Can it be illustrated graphically? b. Consider a 12-person economy where the individuals are employed equally across the sectors. If the modern urban wage = £8, the informal urban wage = £3, and the tradition rural income = £1, what is the squared poverty gap index (P₂) given that the poverty line = £1.25? Suppose that rural income now rises to £2, other things being equal, how would you characterise and show this type of growth?arrow_forwardA nation's citizens often dislike the economy's distribution of income. Explain two methods for creating a more equal distribution of income.arrow_forwardThe following table shows the approximate income distribution for Peru, Bulgaria, and Lithuania in 2016. In particular, it shows the income shares of each fifth of the income distribution. Percentage Share, 2016 Percentage of Families Peru Bulgaria Lithuania Lowest fifth 4 9 7 Second-lowest fifth 8 14 12 Middle fifth 12 17 16 Second-highest fifth Highest fifth 20 22 22 56 38 43 has the most total income. On the following graph, plot the Lorenz curves for the three countries. Plot Peru's Lorenz curve using the green points (triangle symbol), Bulgaria's Lorenz curve using the blue points (circle symbol), and Lithuania's Lorenz curve using the purple points (diamond symbol). Be sure to plot the first point of each Lorenz curve at (0,0). Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. CUMULATIVE PERCENTAGE OF MONEY INCOME graph.) 20 100 20 40 60 80 100 CUMULATIVE PERCENTAGE OF FAMILIES Peru Bulgaria Lithuania…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of MicroeconomicsEconomicsISBN:9781305156050Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning