Suppose one third of all families on the island of Sophia had zero income in a given year and the other two-thirds had the same positive income. Draw the Sophia Lorenz curve for this island's family income distribution. Also compute the Gini coefficient.

Suppose one third of all families on the island of Sophia had zero income in a given year and the other two-thirds had the same positive income. Draw the Sophia Lorenz curve for this island's family income distribution. Also compute the Gini coefficient.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter18: Income Distribution And Poverty

Section: Chapter Questions

Problem 1QFR

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Question

Suppose one third of all families on the island of Sophia had zero income in a given
year and the other two-thirds had the same positive income. Draw the Sophia
Lorenz curve for this island's family income distribution. Also compute the Gini
coefficient.

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