Suppose the bottom 50 percent of a population (in terms of earnings) all receive an equal share of p percent of the nation’s income, where 0 ≤ p ≤ 50. The top 50 percent of the population all receive an equal share of 1 − p percent of the nations income. Calculate the Gini coefficient as an expression of p
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- Name three products for which subjectivediscretionary income might be a better predictor ofconsumption than actual income. Justify your answer.A group of 10 people have the following annual incomes: $55,000, $30,000, $15,000, $20,000, $35,000, $80,000, $40,000, $45,000, $30,000, $50,000. Calculate the share of total income each quintile of this income distribution received. Do the top and bottom quintiles in this distribution have a greater or larger share of total income than the top and bottom quintiles of the U.S. income distribution for 2005?Due to a stagnant income for 23 years, the number of Mexicans who cannot buy the basic basket has been practically the same since 1992. According to data from the National Council for the Evaluation of Social Development Policy (Coneval), in 2014, the 53.2 percent of the population had income below the welfare line, and a monthly per capita income of 3,115 pesos. In 1992, when poverty began to be measured in Mexico, it was 53.1 percent of the population, with an average income of 3,322 pesos. The basic product consumption basket is a necessary element to calculate inflation through the (INPC / GDP deflator / interest rate) _______________________________
- If the income effect is smaller than the substitution effect following a change in productivity, variation in total factor productivity has the potential to generate variation in Real GDP similiar to the ones observed in the data. True FalseSuppose a small country called "Mamidas" is experiencing an aging population, leading to an increase in the number of retirees and a decline in the labor force participation rate. As a result, the government decides to implement an antipoverty policy to provide financial support to the elderly population. The policy aims to ensure that retired individuals have a minimum income to cover basic living expenses. Given the following information: The total number of retirees in Mamidas is 10,000. The poverty threshold for retirees is set at $20,000 per year. The average annual retirement income before the antipoverty policy is $16,000 per retiree. Calculate the total annual cost of the antipoverty policy for the government of Mamidas. Assume for this case that all retirees earn the average income.In a society with 240,000 households, 10,000 households earn $4 each, 4,000 households earn $2 each, 10,000 households earn $10 each, and the rest earn $1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%
- Question 9 In Country X there are only two income levels: $10,000 and $40,000. Twenty million individuals earn the low income and twenty million earn the high income. The Gini coefficient associated with this income distribution is given by 0.70 0.30 0.35 0.65Calculate the new Gini Coefficient for Algura when income changes as follows:Poverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The official definition of the poverty line traces back to Group of answer choices A)The Great Depression B)Mollie Orshansky, whose idea was to define a poverty line based on the cost of a healthy diet. C)1953 and the ability to pay for housing and food. D)The 1965 cost of providing food, housing, and transportation.
- Question 14 In an economy with perfect income equality the Gini coefficient would beThe figure below shows the proportion of children in earnings quantile conditional on their father's earnings quantile in the US and Denmark, respectively. Based on this information, which of the following statements is correct? US I Child in poorest 20% I Child in richest 20% DENMARK 0.400 0.4 0.4 0.360 0.337 0.3 0.3- 0.253 0.2 0.2 0.167 0.161 0.098 0.1 0.1 0.074 Poorest 20% Richest 20% Poorest 20% Richest 20% Father's earnings quintile Select one: O a. In Denmark, it is far more difficult for the richest families to preserve their status for the next generation than in the US. O b. In the US, 7.4% of those from the poorest 20% of families managed to move up to become part of the richest 20%. O c. The figure suggests that there is very little governments can do to reduce intergenerational transmission of economic status. O d. The data provides support for the "American Dream", a term coined in 1931 by James Truslow Adams that refers to "a dream of social order in which each man and…In an economy, over the last decade, each of the top five decile groups has experienced a fall in their share of total income. In contrast, the bottom five decile groups have experienced a substantial increase in their share of total income. It can be concluded that, over this period, the distribution of income is most likely to have become A more equal B more equal but less equitable C more equitable D more equitable but less equal