3. Thailand's Gini index in 2019 was 34.9%. The equation of the Lorenz curve that was used to compute this measure of income distribution is f(x) = 1 – (1 – x)". (a) Find the value of m. [Round off your answer to four decimal places] (b) Graph f(x) and the curve of absolute equality where the Lorenz curve is valid. [Use a graphing software] (c) For what values of m will the Gini index give a measure of income distribution that is more equitable? Justify your answer.

3. Thailand's Gini index in 2019 was 34.9%. The equation of the Lorenz curve that was used to compute this measure of income distribution is f(x) = 1 – (1 – x)". (a) Find the value of m. [Round off your answer to four decimal places] (b) Graph f(x) and the curve of absolute equality where the Lorenz curve is valid. [Use a graphing software] (c) For what values of m will the Gini index give a measure of income distribution that is more equitable? Justify your answer.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 7SCQ: Table 15.9 shows the share of income going to each quintile of the income distribution for the...

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