1. Study Questions and Problems #1 The following table contains data on the distribution of income in the countries of France and Canada. Compute the cumulative distribution of income for each country to complete the table. Percentage of France Percentage France Cumulative Share Families Share Lowest fifth 17.7 Second-lowest fifth 19.9 Middle fifth 20.4 Second-highest fifth 20.7 Highest fifth 21.3 Canada Percentage Canada Cumulative Share Share 9 14.2 17.5 21.9 37.4 Using data from the previous table, construct the Lorenz curve for each country on the following graph. The black line shows perfect equality. Use the blue points (circle symbol) to construct the Lorenz curve for France starting at (0,0) and use the orange points (square symbol) to construct the Lorenz curve for Canada starting at (0, 0). Line segments will automatically connect the points. CUMULATIVE PERCENTAGE OF MONEY INCOME 20 100 Perfect Equality Line France 20 40 60 80 100 CUMULATIVE PERCENTAGE OF FAMILIES ---- Canada True of False: Of the two countries, Canada has a lower income inequality than France. True False
1. Study Questions and Problems #1 The following table contains data on the distribution of income in the countries of France and Canada. Compute the cumulative distribution of income for each country to complete the table. Percentage of France Percentage France Cumulative Share Families Share Lowest fifth 17.7 Second-lowest fifth 19.9 Middle fifth 20.4 Second-highest fifth 20.7 Highest fifth 21.3 Canada Percentage Canada Cumulative Share Share 9 14.2 17.5 21.9 37.4 Using data from the previous table, construct the Lorenz curve for each country on the following graph. The black line shows perfect equality. Use the blue points (circle symbol) to construct the Lorenz curve for France starting at (0,0) and use the orange points (square symbol) to construct the Lorenz curve for Canada starting at (0, 0). Line segments will automatically connect the points. CUMULATIVE PERCENTAGE OF MONEY INCOME 20 100 Perfect Equality Line France 20 40 60 80 100 CUMULATIVE PERCENTAGE OF FAMILIES ---- Canada True of False: Of the two countries, Canada has a lower income inequality than France. True False
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter20: Income Inequality And Poverty
Section: Chapter Questions
Problem 5PA
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