Question

The Lorenz curve is

a.a graph of the income distribution that expresses the relationship between the cumulative percentage of households and the cumulative percentage of wealth.

b.a graph of the income distribution that expresses the relationship between the cumulative percentage of individuals and the cumulative percentage of income.

c.a graph of the income distribution that expresses the relationship between the cumulative percentage of households and the cumulative percentage of income.

d.a graph of the tax share distribution that expresses the relationship between the cumulative percentage of households and cumulative percentage of income.

e.none of the above

A Gini coefficient of __________ is consistent with the line of perfect income equality.

a.zero

b.1

c.0.5

d.2

e.none of the above

Answer #1

1. Option C.

- A Lorenz curve is a graph of income distribution which shows the relationship between cumulative Percentage of households and the cumulative Percentage of income.
- This curve shows how Income is distributed among all members of a population.
- It graphically expresses income inequality among various individuals or groups within a society.

2. Option A.

- A Gini coefficient of zero is consistent with the line of perfect income equality.
- This is because, a Gini index of zero coefficient will show same values for each level of income.
- That is when it is zero, the income level will be the same for all the individuals of an economy.

Consider the area between the line of perfect income equality
and the Lorenz curve. In country A this area is larger than in
country B. It follows that??????
the bottom 20 percent income group receives a lower percentage
of total income in country A than in country B.
the bottom 20 percent income group receives a lower percentage
of total income in country B than in county A.
the top 20 percent income group receives a higher percentage of
total...

The function L(x)=0.6847x^2+0.0522x represents the Lorenz Curve
for Country Y’s income distribution in 1996.
a Compute the percent of wealth the upper 30% of the population
controlled. bCompute the percent of wealth the lower 60% of the
population controlled. c Determine the Gini index of Country Y.

32) The market for used cars is used by the textbook to
illustrate the problem of
free riding
adverse selection
moral hazard
negative externalities
positive externalities
33) Moral hazard and adverse selection both arise from a more
general phenomenon known as
nonexcludability
the free rider problem
spillover effects
rent-seeking
asymmetric information
34) According to the textbook, which of the following are
problems that complicate the interpretation of official data on the
distribution of income?
the quintiles contain unequal populations
the...

1.For a competitive, profit-maximizing firm, the labor demand
curve is the same as the
Group of answer choices
marginal revenue curve.
marginal product curve.
marginal cost curve.
marginal revenue product curve.
2.Scenario 21
Gertrude Kelp owns three boats that participate in commercial
fishing for fresh Pacific salmon off the coast of Alaska. As part
of her business she hires a captain and several crew members for
each boat. In the market for fresh Pacific salmon, there are
thousands of firms...

1. A researcher conducts a survey to determine the relationship
between aptitude for mathematics and musical ability. She finds a
perfect relationship. High levels of mathematics aptitude are
associated with low levels of musical ability. Given this
information, what is the value of the correlation coefficient for
the above study? ______________
2. You obtain a score of 80 on a test. If the test is graded on
a ‘curve’ (based on how you did in comparison with the class as...

The aggregate demand curve shows the relationship between the
aggregate price level and:
A) aggregate productivity.
B) the aggregate unemployment rate.
C) the aggregate quantity of output demanded by households,
businesses, the government, and the rest of the world.
D) the aggregate quantity of output demanded by businesses
only.
2.When the aggregate price level increases, the purchasing power
of many assets
falls, causing a decrease in consumer spending. This is known as
the _____ effect and is a reason why...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 16 minutes ago

asked 29 minutes ago

asked 29 minutes ago

asked 33 minutes ago

asked 35 minutes ago

asked 35 minutes ago

asked 50 minutes ago

asked 51 minutes ago

asked 51 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago