Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 18, Problem 2P
To determine
Indication of given Lorenz curve.
Expert Solution & Answer
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Students have asked these similar questions
10) What does a Lorenz curve show? Show a Lorenz
curve for a country like the USA where there is a
difference between income of the population.
Explain Lorenz curve in short witha diagram
6. Comparing Gini coefficients of different countries
The following diagram shows the Lorenz curves for three countries. Country X's Lorenz curve is shown in blue, Country Y's Lorenz curve is shown in
purple, and Country Z's Lorenz curve is shown in green.
Region I is the area above Country X's Lorenz curve and below the 45-degree line. Region II is the area below Country X's Lorenz curve and above
Country Y's Lorenz curve. Region III is the area below Country Y's Lorenz curve and above Country Z's Lorenz curve. Region IV is the area below
Country Z's Lorenz curve.
100
CUMULAT ME PERCENTAGE OF INCOME
8
8
0
Country X
Country Y
III
Country Z
IV
80
20
40
60
CUMULATIVE PERCENTAGE OF HOUSEHOLDS
100
Chapter 18 Solutions
Econ Micro (book Only)
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Similar questions
- Table 15.9 shows the share of income going to each quintile of the income distribution for the United Kingdom in 1979 and 1991. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. How did inequality in the United Kingdom shift over this time period? How can you see the patterns in the quintiles in the Lorenz curves?arrow_forwardIf a country had perfect income equality what would the Lorenz curve look like?arrow_forwardHow has the inequality of income changed in the U.S. economy since the late 1970s?arrow_forward
- A Lorenz curve is a graph whose axes measure the: a. total amount of income in dollars on one axis and the total number of individuals or families receiving that income or a lower one on the other. b. percentage of people (10 percent, 20 percent, etc.) on one axis and the percentage of total income received by the lowest 10 percent, the lowest 20 percent, etc., on the other. c. number of individuals or families receiving a certain income on one axis and the percentage of the total population represented by that number on the other. d. number of individuals or families in different occupations on one axis and the median income received in that occupation on the other. e. income classes (e.g., $0 to $1999 and $2000 to $3999) on one axis and the percentage of individuals or families in each such income class on the other.arrow_forward4 comparing weath inequality in the united states to egyptarrow_forwardThe Lorenz curve represents the relationship between a. the cumulative percentage of households and the cumulative percentage of income b. income tax rates and income tax revenues c. child labor rates and the poverty levels d. income inequality and education level e. market structure and the number of firms in the marketarrow_forward
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