EBK MICROECONOMICS
12th Edition
ISBN: 9780100659452
Author: PARKIN
Publisher: YUZU
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 5SPA
To determine
Lorenz curves of Countries US and UK and the difference in the income distribution in 2009.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Explain and interpret different methods of measuring income inequality.
Explain Lorenz curve in short witha diagram
Incomes in China and India are a small fraction of incomes
in the United States. But incomes in China and India are
growing more quickly those in the United States.
Draw the world Lorenz curve before the growth in income
in China and India. Label it Before.
>>> Reposition the label by clicking on the edge of the
label box and dragging it.
Draw the world Lorenz curve after the growth in income in
China and India. Label it After.
Inequality between the people in China and India and the
people in the United States is
O A. increasing
OB. staying relatively constant
C. decreasing
OD. increasing in some years and decreasing in other
years
%
5
6
Selected:
none
Oll
87
&
7
O
*
8
O
100-
80-
60-
40-
20-
0
Cumulative percentage of income
(
9
20
40
80
60
Cumulative percentage of households
>>> Draw only the objects specified in the
question.
Delete Clear
*
?
)
0
Next
x
10
an
rld"
it fe
dust
real-
lesto
SITI
Oriente
1 C++ (
Camp.o
NS 1 ye
Coding
hool Stu
Mihailescu
NS 2 year.
ython - Fu
ers [Tutoria…
Chapter 19 Solutions
EBK MICROECONOMICS
Ch. 19.1 - Prob. 1RQCh. 19.1 - Prob. 2RQCh. 19.1 - Prob. 3RQCh. 19.1 - Prob. 4RQCh. 19.1 - Prob. 5RQCh. 19.2 - Prob. 1RQCh. 19.2 - Prob. 2RQCh. 19.2 - Prob. 3RQCh. 19.3 - Prob. 1RQCh. 19.3 - Prob. 2RQ
Ch. 19.3 - Prob. 3RQCh. 19.3 - Prob. 4RQCh. 19.3 - Prob. 5RQCh. 19.4 - Prob. 1RQCh. 19.4 - Prob. 2RQCh. 19.4 - Prob. 3RQCh. 19 - Prob. 1SPACh. 19 - Prob. 2SPACh. 19 - Prob. 3SPACh. 19 - Prob. 4SPACh. 19 - Prob. 5SPACh. 19 - Prob. 6SPACh. 19 - Prob. 7SPACh. 19 - Prob. 8SPACh. 19 - Prob. 9APACh. 19 - Prob. 10APACh. 19 - Prob. 11APACh. 19 - Prob. 12APACh. 19 - Prob. 13APACh. 19 - Prob. 14APACh. 19 - Prob. 15APACh. 19 - Prob. 16APACh. 19 - Prob. 17APACh. 19 - Prob. 18APACh. 19 - Prob. 19APACh. 19 - Prob. 20APACh. 19 - Prob. 21APACh. 19 - Prob. 22APACh. 19 - Prob. 23APA
Knowledge Booster
Similar questions
- If a country had perfect income equality what would the Lorenz curve look like?arrow_forwardWhere is income inequality the worst?arrow_forwardThe table below shows the share of income going to each quintile of the income distribution for a nation in 1955 and 2015. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. The purple line represents 1955. The green line represents 2015.arrow_forward
- How Should the US Reduce Economic Inequality? The rich are getting richer. And the super rich are getting super richer. We know some of the names: Warren Buffett, Bill Gates, Mark Zuckerburg, the Walton family (of Wal-Mart). This billionaire club is growing fast. In 2007, there were 946 billionaires in the world. By 2016, that number doubled to 1,810. Of these, 540 were Americans. A 2015 OxFam report warned that the combined wealth of the world's the widening gap is benefitting the top 1 percent. The top 0.1 percent is doing even better. As just one example, CEOS have seen the real value of their salaries increase more than 1,000 percent since the 1950s. Meanwhile, the average worker has seen the real value of his or her income decrease over the last three decades. EV richest 1 percent would soon surpass the com- bined wealth of the other 99 percent of people on the planet. Wealth inequality is an increasingly serious problem in the United States, a nation known as the land of opportu-…arrow_forwardThe closer the Lorenz curve for income is to the line of equality, the larger is the nation's total income. the smaller is the nation's total income. the more equally are incomes distributed. the larger the fraction of the nation's income received by the richest families.arrow_forwardHow does the poverty cycle differ between rural and urban areas?arrow_forward
- Asap plj helparrow_forwardWhat happens to poverty and inequality if income rises for both low-income and high-income workers, but it rises less for the high-income workers?arrow_forwardWhich of these is true of the Lorenz curve? The further away it is from the 45 degree line the more unequal is distribution. The closer it is to the 45 degree line the more unequal is distribution.arrow_forward
- Measuring Inequality: Consider the following (roughly measured) distribution of income in the economy: Share of Households Cumulative Share of Income 1/4 1/12 1/2 1/4 3/4 3/8 1 1 a. Draw the Lorenz-curve for the economy. b. Calculate the Gini-coefficient.arrow_forwardThe table below shows the share of income going to each quintile of the income distribution for a nation in 1960 and 2010. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. The purple line represents 1960. The green line represents 2010. Share of income received 1960 2010 Bottom 20% 10% 5% Bottom 40% 30% 10% Bottom 60% 45% 30% Bottom 80% 75% 60% All 100% 100% |100% Provide your answer below: 110 100- -90 -80 (90,0) -70 (100, 70) -60 Perfect Equality (100,50 Year 2010 -50 (80,50) Year 1960 40 (70, 30) 30- (50, 20) 20 (90, 20) 10 (60, 10) 80 100 Income Quintiles 20 40 60 -10 Cumulative Share of Incomearrow_forwardWhat is the Lorenz Curve and how do you use it to calculate a Gini coefficient?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
- Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax