Question 13 A Lorenz curve measures the on the vertical axis. cumulative percentage of money income cumulative percentage of family wealth cumulative percentage of families demand of families on welfare 0 1 pts

What is the difference between poverty and income inequality?

What is the poverty line?

Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.

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.

How is the poverty rate calculated?

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

economic

Please I need answer to both

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.