Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 18, Problem 7QE
To determine
Identify whether the Lorenz curve for the world would be more or less bowed out compared to the Lorenz curve for the U.S.
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If a country had perfect income equality what would the Lorenz curve look like?
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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
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Similar questions
- How is inequality bad for the economy?arrow_forwardWhat are some contributors to the poverty cycle in your local community? How can we balance inequalities of power between nations?arrow_forwardFind the gini index for a country with a Lorenz curve of y=x3. How does the gini index relate to "absolute communism" versus "absolute nepotism". sentence or 2. You can probably google this question to find out.arrow_forward
- The farther the Lorenz curve from the line of perfect equality, the lower is the income inequality. True or false?arrow_forwardThe Lorenz curve is used to show which of the following? a. The total income generated from all activities b. The degree of inequality in the distribution of income within a country c. The progressivity of the income-tax structure within a country d. The extent of wage differences among workers in similar occupations e. The change in the poverty rate within a country over timearrow_forwardIdentify national strategies to target social exclusion and poverty.arrow_forward
- What would happen to the Lorenz curve if it included wealth distribution?arrow_forwardThe following diagram shows the Lorenz curves for three countries. Country X's Lorenz curve is shown in blue, Country Y's Lorenz curve is shown in purple, and Country Z's Lorenz curve is shown in green. Region I is the area above Country X's Lorenz curve and below the 45-degree line. Region II is the area below Country X's Lorenz curve and above Country Y's Lorenz curve. Region III is the area below Country Y's Lorenz curve and above Country Z's Lorenz curve. Region IV is the area below Country Z's Lorenz curve. CUMULATIVE PERCENTAGE OF INCOME 100 60 9 20 0 0 I O Country Z Country X 11 40 O Country Y Country X 20 60 80 CUMULATIVE PERCENTAGE OF HOUSEHOLDS Country Y Country Z IV Based on the graph, the Gini coefficient for Country Y is given by II/ (I + II + III+IV) ▼ Which of the following countries has the lowest Gini coefficient? 100arrow_forwardHow can The Tax Reform for Acceleration and Inclusion Law (TRAIN Law) will lessen or worsen poverty in the Philippines?arrow_forward
- Why inequality still exist? Discuss your answer.arrow_forwardWhen does absolute poverty exist? Do we see this in the Philippines? defend your answerarrow_forwardStep on how to solve on Excel. In a certain country, the population consists of five blue people and five green people. Each green person has an income of $2 per year. Each blue person has an income of $6 per year.a. Draw the Lorenz Curve for this country.b. On your diagram from Part a, indicate clearly what area you would divide by what other area to calculate the Gini Coefficient.c. Calculate the Gini Coefficient. Show your work.arrow_forward
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