Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by the functions 1 9 - x+ 10 10 and g(x) = 0.54x³.5+ 0.46x (a) What percent of the total income do the richest 20% of bankers receive? Note: Round off to two decimal places if necessary. (b) Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)? 22

Based on a study, the Lorenz curves for the distribution of incomes for bankers and actuaries are given respectively by the functions 1 9 - x+ 10 10 and g(x) = 0.54x³.5+ 0.46x (a) What percent of the total income do the richest 20% of bankers receive? Note: Round off to two decimal places if necessary. (b) Compute for the Gini index of f(x) and g(x). What can be implied from the Gini indices of f(x) and g(x)? 22

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter33: Income, Income Distribution, And Poverty

Section: Chapter Questions

Problem 11E: What is the difference between in-kind and cash transfers? Winch might increase the utility of the...

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