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

With your team I would like you to complete the following questions after please post your replies and we will discuss in class Choose a financial instrument or market (such as stocks, bonds, insurance, cash, gold, bitcoin). Explain how investments work for the individual investor mainly yourself. With the current market upheaval and uncertainty what would you and your team consider the best options for investment. Consider the idea of short term investing vs long term investing, laddering, safe haven, liquidity, and risk) Consider Roth IRA vs traditional IRA, ETF's, CD's, Mutual Funds. Always consider taxes and inflation your return should always be greater then inflation and taxes.

Short Description Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 800 billion dollars with an increment of 40 billion dollars, and the y-axis is scaled from 30 to 150 units with an increment of 5 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (160, 70)Point 2 at (720, 140)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (80, 110)Point 2 at (640, 40)A vertical Long-run Aggregate Supply, LRAS with two endpoints:Point 1 at (400, 145)Point 2 at (400, 30)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (720, 60)Point 2 at (160, 130)Two Reference Points:Lines AS, AD, and LRAS intersect at (400, 100)Lines AS and AD1 intersect at (280, 85) a. How much does aggregate demand need to change to restore the…

Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 1000 billion dollars with an increment of 50 billion dollars, and the y-axis is scaled from 0 to 180 units with an increment of 10 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (200, 40)Point 2 at (800, 160)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (200, 160)Point 2 at (800, 40)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (350, 170)Point 2 at (900, 60)A vertical Long-run Aggregate Supply, LRAS line with two endpoints:Point 1 at (500, 170)Point 2 at (500, 0)Two Reference Points:Lines AS and AD1 intersect at (600, 120)Lines AS, AD, and LRAS intersect at (500, 100) a. How much does aggregate demand need to change to restore the…

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.