Attempts Keep the Highest 1/3 2. Constructing a Lorenz curve from Income shares data The following table shows the approximate Income distribution for Colombia, Ukraine, and Turkey in 2014. In particular, it shows the income shares of each fifth of the income distribution. Percentage Share, 2014 Percentage of Families Colombia Ukraine Turkey Lowest fifth 2 9 5 Second-lowest fifth 6 14 10 Middle fifth 11 17 14 Second-highest fifth 18 22 21 Highest fifth 63 38 50 has the least total income. 100 8 CUMULATIVE PERCENTAGE OF MONEY INCOME 20 40 00 60 graph.) 20 40 60 CUMULATIVE PERCENTAGE OF FAMILIES 100 Colombia O Ukraine Turkey has the least income inequality. (Hint: You may want to refer to the previous Lorenz curve

Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?

Explain how a country may experience greater equality in the distribution of income, yet still experience high rates of poverty. Hint: Look at the Clear It Up 'How do governments measure poverty in low-income countries?' and compare to Table 15.5.

If a country had perfect income equality what would the Lorenz curve look like?

Which set of policies is more likely to cause a tradeoff between economic output and equality: policies of redistribution policies aimed at the ladder of opportunity? Explain how the production possibility frontier tradeoff between economic equality and output might look in each case.

Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.

Briefly explain the differences between TANF, the earned income tax credit, SNAP, and Medicaid.

If a family of three earned 20,000, would they be able to make ends meet given the official poverty threshold?

nd Study Tools tions ccess Tips cess Tips Back 2. Constructing a Lorenz curve from income shares data The following table shows the approximate income distribution for Colombia, Ukraine, and Turkey in 2011. In particular, it shows the income shares of each quintile of the income distribution. Income Group Lowest quintile Second quintile Third quintile Fourth quintile Highest quintile Percentage of Total Income, 2011 Turkey Colombia Ukraine 2 9 5 6 14 10 17 14 21 50 18 63 22 38 has the most total income. On the following graph, plot the Lorenz curves for the three countries. Plot Colombia's Lorenz curve using the green points (triangle symbol), Ukraine's Lorenz curve using the blue points (circle symbol), and Turkey's Lorenz curve using the purple points (diamond symbol) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically.

Summarize what has happened tothe incidence of poverty since 1960, anddetermine when and why the greatestprogress was made in reducing poverty (InCome Differences) List some reasons why householdincomes differ. Which factors are the mostimportant?