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D-john D-john
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Posts: 536
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5 years ago
Figure 18-8




Refer to Figure 18-8 to answer the following questions.
a.Did the distribution of income become more equal in 2016 than it was in 2015, or did it become
less equal? Explain.
b.If area A = 1,900, area B = 450, and area C = 2,650, calculate the Gini coefficient for 2015 and the
Gini coefficient for 2016.
Textbook 
Microeconomics

Microeconomics


Edition: 7th
Authors:
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Replies
wrote...
#1
5 years ago
a.The distribution of income became less equal in 2016. The Lorenz Curve for 2016 is farther from
the diagonal line of equality than is the Lorenz Curve for 2015.
b.The Gini Coefficient = (the area inside the Lorenz Curve)/(the area beneath the diagonal line of
equality). Thus, for 2015, the Gini Coefficient = (A)/(A + B + C) = 1,900 /5,000 = 0.38. For 2016, the Gini Coefficient = (A + B)/(A + B + C) = 2,350 /5,000 = 0.47.
D-john Author
wrote...
#2
5 years ago
Good timing, thanks!
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