1. (Appendix 15A) Ten college seniors have accepted job offers for the year after they graduate. Their starting salaries are given here. Organize the data into quintiles, and then, using these data, draw the Lorenz curve for this group. Finally, calculate the relevant Gini coefficient. Becky $42,000 Billy $20,000 Charlie $31,000 Kasia $24,000 Nina $34,000 Raul $37,000 Rose $29,000 Thomas $35,000 Willis $60,000 Yukiko $32,000 2. Suppose that the wage distribution for a small town is given in Table 15P.2. Assume that a minimum-wage law is passed that doesn't affect the market in high-wage sector A but boosts wages to $15 per hour in sector B, the covered sector, while reducing employment to 20. Displaced workers in sector B move into the uncovered sector, C, where wages fall to $8.00 per hour as employment grows to 30. Has wage inequality risen or fallen? Explain. Table 15P.2 Wage Distribution in a Small Town Sector Number of workers Wage ($) A 50 20 per hour B 25 10 per hour C 25 10 per hour 4. Calculate the coefficient of variation for the workers listed in problem 1. 5. (Appendix 15A) Table 15P.5 gives data on the shares of household income by quintile in the United States in 2005. Draw the Lorenz curve, and calculate the Gini coefficient. Table 15P.5 U.S. Household Income by Quintile, 2005 Quintile Percent share of income Lowest 3.4 Second 8.6 Third 14.6 Fourth 23.0 Highest 50.4