100 80- Country X 40 20- Country Z 20 40 60 80 100 PERCENTAGE OF HOUSEHOLDS 4. Based on the information in the Lorenz curve above, which of the following is true? a. People in Country X make more money than people in Country z. b. Income is more equally distributed in Country X than in Country Z. C. The top 20 percent of households in Country X received 60% of the total income. d. The top 20 percent of households in Country Z received 40 percent of the total income. e. The average income in Country X is higher than the average income in Country Z. PERCENTAGE OF INCOME

100 80- Country X 40 20- Country Z 20 40 60 80 100 PERCENTAGE OF HOUSEHOLDS 4. Based on the information in the Lorenz curve above, which of the following is true? a. People in Country X make more money than people in Country z. b. Income is more equally distributed in Country X than in Country Z. C. The top 20 percent of households in Country X received 60% of the total income. d. The top 20 percent of households in Country Z received 40 percent of the total income. e. The average income in Country X is higher than the average income in Country Z. PERCENTAGE OF INCOME

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 17SQ

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Similar questions

If a country had perfect income equality what would the Lorenz curve look like?
What is measured on the two axes of a Lorenz curve?
What is the difference between poverty and income inequality?
To reduce income inequality, should the marginal tax rates on the top 1 be increased?
A Lorenz curve is a graph whose axes measure the: a. total amount of income in dollars on one axis and the total number of individuals or families receiving that income or a lower one on the other. b. percentage of people (10 percent, 20 percent, etc.) on one axis and the percentage of total income received by the lowest 10 percent, the lowest 20 percent, etc., on the other. c. number of individuals or families receiving a certain income on one axis and the percentage of the total population represented by that number on the other. d. number of individuals or families in different occupations on one axis and the median income received in that occupation on the other. e. income classes (e.g., $0 to $1999 and $2000 to $3999) on one axis and the percentage of individuals or families in each such income class on the other.
The following income distribution data are for Brazil. Quintile Percent Share Lowest 20% 3.0% Second quintile 6.9% Third quintile 11.8% Fourth quintile 19.6% Highest 20% 58.7% Highest 10% 43.0% a. Carefully graph the Lorenz curve, labeling the axes. b. Brazil’s national income is about $300 billion. What is the approximate dollar income of the bottom 20%? Bottom 40%?
A. 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. List and discuss two policies for reducing poverty,