Ask a Question
  
  
  
Top Posters
Since Sunday
8
5
4
4
4
4
4
4
4
4
4
4
New Topic  
wrote...
Posts: 67
2 weeks ago Edited: 2 weeks ago, bio_man
Figure 18-9




Refer to Figure 18-9 to answer the following questions.
a. Did the distribution of income become more equal in 2016 that it was in 2015, or did it become less equal? Explain.
b. If area A = 1,600, area B = 200, and area C = 3,200, calculate the Gini coefficient for 2015 and the Gini coefficient for 2016.
Source  Download
Microeconomics
Edition: 7th
Authors:
Read 2 times
1 Reply
Replies
Answer verified by a subject expert
wrote...
Posts: 63
2 weeks ago
Sign in or Sign up in seconds to unlock everything.
a. The distribution of income became more equal in 2016. The Lorenz Curve for 2016 is closer to 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 + B/(A + B + C) = 1,800 /5,000 = 0.36. For 2016, the Gini Coefficient = (A)/(A + B + C) = 1,600 /5,000 = 0.32.
1
Related Topics
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  140 People Browsing
 118 Signed Up Today
Related Images
 102
 64
 76