Please provide accurate and correct answers to both questions without explanation. Thank you for your assistance. The following figure shows the Lorenz curves of two countries such as LC1 and LC2.Cumulative % of income10066.6d.33.3Line of EqualityLC 133.33Cumulative % of household.Which of the following options is correct as per the given figure?a. Both countries face income inequality.LC266.6100b. Inequality in country 2 is greater than inequality in country 1.c.Country 2 has the highest level of inequality because the distance between the Lorenzcurve and the line of equality is highest.All of the above Consider the following figure to answer the following question.Wage(Kenyanshillingsper month)20,00015,00012,00010,00020,000 36,00030,000 45,000SupplyDemand60,000Quantityof laborSuppose that the labor market is in equilibrium. The government has decided to implement aminimum wage of $10,000 Kenyan Shillings per month. How much does the number of hiredchange? (DL-3)a. Changes by 6000 units of laborb. Change by 9000 units of labor.c. Changes by 0 units of labord. Changes by 15000 units of labor

Lorenz curve graphically shows the income inequality that exists in a country using the cumulative…

Suppose that the labor market is in equilibrium. The government has decided to implement a minimum wage of $10,000 Kenyan Shillings per month. How much does the number of hired change? (DL-3) a. Changes by 6000 units of labor b. Change by 9000 units of labor. c. Changes by 0 units of labor d. Changes by 15000 units of labor

Suppose that the labor market is in equilibrium. The government has decided to implement a minimum wage of $10,000 Kenyan Shillings per month. How much does the number of hired change? (DL-3) a. Changes by 6000 units of labor b. Change by 9000 units of labor. c. Changes by 0 units of labor d. Changes by 15000 units of labor

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter17: Income, Poverty, And Health Care

Section: Chapter Questions

Problem 2P

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2.1 In an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from y = 0.97x for one year to y = 0.33x + 0.67x for the next year. Find the Gini coefficient of income for both years. (Round your answers to three decimal places.) before after Compare the distributions of income before and after the tax law was passed. Interpret the result. O The change increases the difference in incomes. The change makes no difference in incomes. O There is not enough information to compare the incomes. The change decreases the difference in incomes. O The change makes the incomes equal. Need Help? Read It
3. Suppose that the Lorenz Curve for country A is given by yA = 0.3x2 + 0.7x. Use the Gini index to deter- x2.2 mine which of the two countries has greater inequality in its income and for country B is yB = distribution.