Canada had the following distribution of Income after taxes in 2006 Based on the information in the tables, which one is the correct Gini coefficient of income inequality? Deciles cumulative share of income Lorenz curve for after tax income in Canada 0% (2006) 1 0% 2% 6% 0.8 4. 11% 0.6 18% 04 26% 0.2 7 37% 8 50% share of income

Microeconomics
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ISBN:9781337617406
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Chapter15: The Distribution Of Income And Poverty
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Canada had the following distribution of Income after taxes in 2006 Based on the information in the tables, which one is the correct Gini coefficient of
income inequality?
Deciles
cumulative share of income
Lorenz curve for after tax income in Canada
0%
(2006)
1
0%
1
2
2%|
3
6%
0.8
4
11%
0.6
18%
0.4
26%
0.2
37%
50%
0.1
0.2
0.3
0.4 0.5
0.6
0.7
0.8
0.9
1
9
67%
share of population
10
100%
cumulative share of income
equidistribution line
O a. 0.47
O b. 0.43
O c. 0.42
O d. 0,44
O e. 0.23
O
share of income
Transcribed Image Text:Canada had the following distribution of Income after taxes in 2006 Based on the information in the tables, which one is the correct Gini coefficient of income inequality? Deciles cumulative share of income Lorenz curve for after tax income in Canada 0% (2006) 1 0% 1 2 2%| 3 6% 0.8 4 11% 0.6 18% 0.4 26% 0.2 37% 50% 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 9 67% share of population 10 100% cumulative share of income equidistribution line O a. 0.47 O b. 0.43 O c. 0.42 O d. 0,44 O e. 0.23 O share of income
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