Assume that the country has following data: Individual 2: Income Php 400,000; Individual 4: Income Php 600,000; Individual 6: Php 1,000,000. What is the area under Lorenz Curve does each individual have?

Incomes in China and India are a small fraction of incomes in the United States. But incomes in China and India are growing more quickly those in the United States. Draw the world Lorenz curve before the growth in income in China and India. Label it Before. >>> Reposition the label by clicking on the edge of the label box and dragging it. Draw the world Lorenz curve after the growth in income in China and India. Label it After. Inequality between the people in China and India and the people in the United States is O A. increasing OB. staying relatively constant C. decreasing OD. increasing in some years and decreasing in other years % 5 6 Selected: none Oll 87 & 7 O * 8 O 100- 80- 60- 40- 20- 0 Cumulative percentage of income ( 9 20 40 80 60 Cumulative percentage of households >>> Draw only the objects specified in the question. Delete Clear * ? ) 0 Next x 10 an rld" it fe dust real- lesto SITI Oriente 1 C++ ( Camp.o NS 1 ye Coding hool Stu Mihailescu NS 2 year. ython - Fu ers [Tutoria…

Q5. Poverty measures a. The Poverty Gap Index or Normalized Poverty Gap is the Average Poverty Gap divided by the poverty line. Show that the poverty gap index is the FGT index with a = 1 b. A population that has a greater share of extreme poor among the poor will have a higher P2, even if it has the same headcount ratio and poverty gap index as another population. Explain. c. Consider a population with four individuals with incomes y₁ = {7, 3, 8, 4} and a poverty yi line yp 5. Calculate Po, P₁, and P2. = d. What is the Multidimensional Poverty Index (MPI) and how is it a more improved measure of poverty?

The Lorenz curve for Bangladesh looks like this: Cumulative percentage of income 100 58.7 37.4 21.3 8.9 Bangladesh Lorenz Curve 20 60 80 Cumulative percentage of population 40 100 04 How much income do individuals in the second income quintile in Bangladesh receive?

a) With the following data draw a Lorenz Curve, putting labels on the graph and writing out data point values. Explain what the Lorenz Curve illustrates, and what the results mean. b) Now explain how one gets the Gini Coefficient from the Lorenz Curve, and what information the coefficient provides.

Using the above Lorenz Curve, answer the following questions. . .   Approximately what percentage of the income does the richest 20% of Country A earn?   Approximately what percentage of the income does the poorest 20% of Country B earn?   If the government of Country B increased the progressivity of income taxes, would its Lorenz Curve move closer to the 45-degree reference line, closer to Country A's Lorenz Curve, or not move at all?