Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 20, Problem 8SPPA
To determine
To explain:
Assuming the news that lotteries take money from poor people and make an unequal distribution of income to be correct, explain the way in which lottery affects the distribution of income with the help of Lorenz curve.
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The $1.4 billion trick to make us accept income inequality
Lotteries take money from the poor and redistribute it unequally. The poor, the uneducated, and
minorities play the lottery the most, and it takes a big chunk of their income
Source: The Huffington Post, January 12, 2016
If the news clip is correct, how does a lottery change the distribution of income? Draw two Lorenz
curves to illustrate your answer.
Lotteries result in the distribution of income
Draw the Lorenz curve in a country that does not have lotteries. Label it Before
Draw the Lorenz curve for the country after the introduction of lotteries. Label it After
>>> To reposition the label click on the cross by the label box and dragging it
100
80
60
40-
20
Cumulative percentage of income
100
20
40
60
00
Cumulative percentage of households
>>>Draw only the objects specified in the question
G
The $1.4 billion trick to make us accept income inequality
Lotteries take money from the poor and redistribute it unequally. The poor, the uneducated, and
minorities play the lottery the most, and it takes a big chunk of their income
Source: The Huffington Post, January 12, 2016
If the news clip is correct, how does a lottery change the distribution of income? Draw two Lorenz
curves to ilustrate your answer.
Lotteries result in the distribution of income
Draw the Lorenz curve in a country that does not have lotteries. Label it Before
Draw the Lorenz curve for the country after the introduction of lotteries. Label it After
>> To reposition the label click on the cross by the label box and dragging it
100
80
60
40-
20
Cumulative percentage of income
100
20
40
60
00
Cumulative percentage of households
>>> Draw only the objects specified in the question
G
=
The $1.4 billion trick to make us accept income inequality
Lotteries take money from the poor and redistribute it unequally. The poor, the uneducated, and minorities play the lottery
the most, and it takes a big chunk of their income.
Source: The Huffington Post, January 12, 2016
If the news clip is correct, how does a lottery change the distribution of income? Draw two Lorenz curves to illustrate your
answer.
CID
Lotteries result in the distribution of income
OA. becoming more unequal
OB. becoming more equal
OC. remaining unchanged
Draw the Lorenz curve in a country that does not have lotteries. Label it Before.
Draw the Lorenz curve for the country after the introduction of lotteries. Label it After.
>>> To reposition the label click on the cross by the label box and drag it.
Cumulative percentage of income
100-
80-
60-
0
20
40
60
80
100
Cumulative percentage of households
>>> Draw only the objects specified in the question.
40-
20-
Chapter 20 Solutions
Foundations of Economics (8th Edition)
Ch. 20 - Prob. 1SPPACh. 20 - Prob. 2SPPACh. 20 - Prob. 3SPPACh. 20 - Prob. 4SPPACh. 20 - Prob. 5SPPACh. 20 - Prob. 6SPPACh. 20 - Prob. 7SPPACh. 20 - Prob. 8SPPACh. 20 - Prob. 9SPPACh. 20 - Prob. 1IAPA
Ch. 20 - Prob. 2IAPACh. 20 - Prob. 3IAPACh. 20 - Prob. 4IAPACh. 20 - Prob. 5IAPACh. 20 - Prob. 6IAPACh. 20 - Prob. 7IAPACh. 20 - Prob. 8IAPACh. 20 - Prob. 9IAPACh. 20 - Prob. 10IAPACh. 20 - Prob. 11IAPACh. 20 - Prob. 1MCQCh. 20 - Prob. 2MCQCh. 20 - Prob. 3MCQCh. 20 - Prob. 4MCQCh. 20 - Prob. 5MCQCh. 20 - Prob. 6MCQCh. 20 - Prob. 7MCQ
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