To state: the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 19, Problem 1E

To determine

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Expert Solution & Answer

Explanation of Solution

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

When the income is equally distributed, the Lorenz curve will be a straight 45 degree line.

In case of a normal economy, the Lorenz curve will lie beneath it, presenting the reality of wealth distribution.

As per the definition, this curve cannot be bowed upward as the bottom 10% of incomes can't earn more than the top 90% of incomes.

EBK MICROECONOMICS, Chapter 19, Problem 1E

Economics Concept Introduction

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

In other words, it is defined as a graph on which the cumulative percentage of total national income is plotted against the corresponding population (cumulative percentage of the corresponding population)

The degrees to which this curve sags below the straight line represents the degree of inequality in the distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The farther the Lorenz curve from the line of perfect equality, the lower is the income inequality. True or false?

What 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.

What are some reasons why a certain degree of inequality of income would be expected in a market economy?

Answer 2

Question

Chapter 19, Problem 1E

To determine

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Expert Solution & Answer

Explanation of Solution

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

When the income is equally distributed, the Lorenz curve will be a straight 45 degree line.

In case of a normal economy, the Lorenz curve will lie beneath it, presenting the reality of wealth distribution.

As per the definition, this curve cannot be bowed upward as the bottom 10% of incomes can't earn more than the top 90% of incomes.

EBK MICROECONOMICS, Chapter 19, Problem 1E

Economics Concept Introduction

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

In other words, it is defined as a graph on which the cumulative percentage of total national income is plotted against the corresponding population (cumulative percentage of the corresponding population)

The degrees to which this curve sags below the straight line represents the degree of inequality in the distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 19, Problem 1E

To determine

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Expert Solution & Answer

Explanation of Solution

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

When the income is equally distributed, the Lorenz curve will be a straight 45 degree line.

In case of a normal economy, the Lorenz curve will lie beneath it, presenting the reality of wealth distribution.

As per the definition, this curve cannot be bowed upward as the bottom 10% of incomes can't earn more than the top 90% of incomes.

EBK MICROECONOMICS, Chapter 19, Problem 1E

Economics Concept Introduction

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

In other words, it is defined as a graph on which the cumulative percentage of total national income is plotted against the corresponding population (cumulative percentage of the corresponding population)

The degrees to which this curve sags below the straight line represents the degree of inequality in the distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 19, Problem 1E

To determine

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Expert Solution & Answer

Explanation of Solution

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

When the income is equally distributed, the Lorenz curve will be a straight 45 degree line.

In case of a normal economy, the Lorenz curve will lie beneath it, presenting the reality of wealth distribution.

As per the definition, this curve cannot be bowed upward as the bottom 10% of incomes can't earn more than the top 90% of incomes.

EBK MICROECONOMICS, Chapter 19, Problem 1E

Economics Concept Introduction

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

In other words, it is defined as a graph on which the cumulative percentage of total national income is plotted against the corresponding population (cumulative percentage of the corresponding population)

The degrees to which this curve sags below the straight line represents the degree of inequality in the distribution of income.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 19, Problem 1E

To determine

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Expert Solution & Answer

Explanation of Solution

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

When the income is equally distributed, the Lorenz curve will be a straight 45 degree line.

In case of a normal economy, the Lorenz curve will lie beneath it, presenting the reality of wealth distribution.

As per the definition, this curve cannot be bowed upward as the bottom 10% of incomes can't earn more than the top 90% of incomes.

EBK MICROECONOMICS, Chapter 19, Problem 1E

Economics Concept Introduction

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

In other words, it is defined as a graph on which the cumulative percentage of total national income is plotted against the corresponding population (cumulative percentage of the corresponding population)

The degrees to which this curve sags below the straight line represents the degree of inequality in the distribution of income.

Answer 6

Chapter 19, Problem 1E

To determine

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Expert Solution & Answer

Explanation of Solution

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

When the income is equally distributed, the Lorenz curve will be a straight 45 degree line.

In case of a normal economy, the Lorenz curve will lie beneath it, presenting the reality of wealth distribution.

As per the definition, this curve cannot be bowed upward as the bottom 10% of incomes can't earn more than the top 90% of incomes.

EBK MICROECONOMICS, Chapter 19, Problem 1E

Economics Concept Introduction

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

In other words, it is defined as a graph on which the cumulative percentage of total national income is plotted against the corresponding population (cumulative percentage of the corresponding population)

The degrees to which this curve sags below the straight line represents the degree of inequality in the distribution of income.

Answer 7

Chapter 19, Problem 1E

To determine

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Answer 8

Expert Solution & Answer

Explanation of Solution

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

When the income is equally distributed, the Lorenz curve will be a straight 45 degree line.

In case of a normal economy, the Lorenz curve will lie beneath it, presenting the reality of wealth distribution.

As per the definition, this curve cannot be bowed upward as the bottom 10% of incomes can't earn more than the top 90% of incomes.

EBK MICROECONOMICS, Chapter 19, Problem 1E

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Lorenz curve:

is defined as a curve that measures the degree of inequality of income distribution of an economy.

In other words, it is defined as a graph on which the cumulative percentage of total national income is plotted against the corresponding population (cumulative percentage of the corresponding population)

The degrees to which this curve sags below the straight line represents the degree of inequality in the distribution of income.

Answer 12

Ch. 19 - Prob. 1E Ch. 19 - Prob. 2E Ch. 19 - Prob. 3E Ch. 19 - Prob. 4E Ch. 19 - Prob. 5E Ch. 19 - Prob. 6E Ch. 19 - Prob. 7E Ch. 19 - Prob. 8E Ch. 19 - Prob. 9E Ch. 19 - Prob. 10E

To state: the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

To state: the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.

Explanation of Solution

Want to see more full solutions like this?

Chapter 19 Solutions

To state:

the concept of Lorenz curve and the shape of Lorenz curve when the income is equally distributed and would the curve bow upwards above the income equality line.