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4) (8 points) Consider an economy with 4 individuals: 2 of them are high school graduates and the other 2 individuals are college graduates. Assume

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4) (8 points) Consider an economy with 4 individuals: 2 of them are high school graduates and the other 2 individuals are college graduates. Assume that high school graduates earn $3 and $5 per hour while college graduates earn $7 and $9 per hour respectively. If we use variance as a measure of inequality, what is between group inequality, within group inequality and total income inequality in this economy? (Individuals are grouped with respect to their education level) Interpret the results

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