Explain the concepts of the ‘Lorenz curve’ and ‘Gini coefficient’. In answering this question, explain the difference between a flatter Lorenz curve and a bent concave Lorenz curve (i.e., pointing to the right of a diagram). (b) Explain the trade-off between equity and efficiency in the implementation of a poverty reduction policy.

Q: When the Lorenz curve lies above thediagonal,a. the poorest 20 percent of the populationreceive more…

A: Lorenz curve is the curve which shows inequality in the economy, it could be income inequality or…

Q: As income transfer programs accompanying the War on Poverty increased beginning in the latter half…

A: The income transfer payment is the benefit to the people who lays below a certain level of income.…

Q: Suppose a Lorenz curve for a particular country is f(x)=x^2for 0≤x≤1. What is the Gini index of…

A: Gini index  (GI) can be calculated by using the following formula.

Q: Consider an income distribution S: (10, 20, 30, 50, 100). Suppose it is divided into two groups,…

A: Poverty line  The poverty line in an economy represents the minimum level of income, which shows the…

Q: You have been provided with the following statement: “According to the World Bank, South Africa…

A: Ginni coefficient shows the level of inequality in any country. Higher value of ginni means higher…

Q: As the Lorenz Curve gets closer to the line of absolute equality, the ________. a. the higher is the…

A: "Lorenz curve represents the graphical measurement of income or wealth inequality within a…

Q: The term obtained by dividing the area of inequality shown by a Lorenz curve by the area of the…

A: Gini Coefficient It is the area below the line of perfect equality minus the area below the Lorenz…

Q: After regressive transfer, what proportion of total income belongs to bottom 80 percent of the…

A: Introduction: Gini Coefficient: The Gini index, often known as the Gini coefficient, is a measure of…

Q: The tax policy is expected to narrow the gap in the income gap Public. Economic justice is generally…

A: Lorenz curve is defined as the way income is distributed through graphical representation.

Q: Explain a situation using the supply and demand for skilled labor in which the increased number of…

A: The demand and supply concept has to be understood by the the law of demand and supply where in law…

Q: Canada had the following distribution of Income after taxes in 2006 Based on the information in the…

A: Gini Coefficient is a widely used measure for income inequality in the countries . Gini Coefficient…

Q: Answer in complete solutions: The government of a small country is planning sweeping changes in the…

A: We are going to find the Gini coefficient with respect to two different Lorenz curve to answer this…

Q: On the Lorenz curve, a household earning the median income is in the _______________ quintile.…

A: A Lorenz curve is a graphical representation of income or wealth distribution within a community.…

Q: Social inequality has material and ideological roots. Explain and provide an examples

A: Social inequality - When there is an unequal distribution of wealth resources or opportunities…

Q: what do each of the school of economics - classical, neoclasscial, austrian, marxian, keynesian,…

A: Classical economics believe in full employment, and that any divergence from full employment…

Q: Assume that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50,…

A: Lorenz curve is that curve that shows the distribution of wealth or income with the population in…

Q: The graph below shows the Lorenz curves of two different countries stylistically called ‘red’ and…

A: The Gini index, often known as the Gini coefficient, measures income distribution throughout a…

Q: Below is the Lorenz curve of the country Laurania. Lorenz Curve of Laurania 100 100 Cumulative…

A: Gini coefficient is a measure of income inequality in a country.

Q: 1) Greater curvature of the Lorenz line is correlated to greater relative degree of inequality. 2)…

A: Opportunity cost is the sacrifice of the benefit that would have been achieved from the second-best…

Q: The graph shown below illustrates the Lorenz Curves in Country X and Country Y in 2021. Note that…

A: Given information: We have given the Lorenz curve for country X and country Y. The Lorenz curve for…

Q: 100 Percent of Families Refer to the above graph. Venezuela has a very small number of extremely…

A: In US, inequality is greater that is why it is shown by Lorenz curve (C) .  In US income difference…

Q: What is the relationship between a Lorenz curve and a Gini coefficient? Give some examples of how…

A: The Lorenz curve is a representation of the distribution of a metric – consumption, wages,…

Q: Suppose that the Lorenz Curve for country A is given by YA = x².2 and for country B is yB = 0.3x² +…

A: In this question the Lorentz curve is given for the two different countries, the Lorentz curve…

Q: Assume that Al, Beth, Carol, David, and Ed receive incomes of $500, $250, $125, $75, and $50,…

A: In this straightforward economy every individual speaks to a total income quintile 20% of the…

Q: A Lorenz curve is a graph whose axes measure the: a. total amount of income in dollars on one axis…

A: The income of the household refers to the disposable income of the household(income that is left…

Q: How does the Gini ratio relate to the Lorenz curve? Why can’t the Gini ratio exceed 1? What is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Using the above Lorenz Curve, answer the following questions. . .   Approximately what percentage…

A: The Lorenz curve is a graphical representation of the distribution of income or wealth in a society.…

Q: Q3: Without doing additional calculations, explain what would happen to the shape of the Lorenz…

A: Given that:- Lorenz curve( Grey colored) of 2012 If:- First 15 % people are given cash assistance by…

Q: QUESTION 43 The Gini coefficient can be approximated from the Lorenz curve by the g=A/(A+B), where A…

A: * SOLUTION :-

Q: Examine the Lorenz Curves for Germany and Singapore shown in Figure 5. Which of the following…

A: The Lorenz curve and Ginni coefficient are the measurements of the inequality in an economy. With…

Q: Explain the trade-off between equity and efficiency in poverty-reduction policy.

A: Equity refers to the concept wherein the citizens of the country are included. It allows the…

Q: A Lorenz curve is a graphical representation of wealth distribution among a population. Conduct…

A: A Lorenz curve is a graphical representation of wealth distribution or income inequality among a…

Q: Consider a Lorenz curve given by f(=) = z" for 0< z< 1 and n 2 1. %3D What happens to the Gini index…

A: Lorenz curve represents the degree of inequality while distributing the income to the individuals.…

Q: True or False (and explain): When the Lorenz Curve is a straight diagonal line (at 45 degrees), we…

A:

Q: [1] Consider an income distribution S: (10, 20, 30, 50, 100). Suppose it is divided into two groups,…

A: The poverty line in an economy represents the minimum level of income, which shows the minimum level…

Q: In recent years, as the gap between the rich and the poor has increased, the Lorenz curve has

A: A Lorenz curve is a graphical representation of the distribution of income or wealth within a…

Q: Use the data from the table below to construct a Lorenz curve.  Income Shares in the United States…

A: Cumulative % of income Cumulative %of person 20% 5.2 20% 10.3 20% 15.3 20% 22.4 20&amp;…

Q: What are the two main attitudes that surround explanations for the causes of poverty in the US (name…

A: Poverty: It refers to a situation under which people of the economy are unable to fulfill their…