(c) For the US, what substantive economic reasons may explain the time series change in the Gini Coefficient?6. (Example 2) Suppose a study indicates the distribution of income for professional baseball players is given by the Lorenz curve: L1(x) = 23 x3 + 31 x , while for professional football players the Lorenz curve is: L2 (x) = 56 x2 + 16 x and for professional basketball players the Lorenz curve is: L3 (x) = 53 x4 + 52 x. Find the Gini index for each sport and determine which has the most equitable income distribution

Social, racial, and gender inequality has been always problems around us. Among those, the most concerning problem is the wealth/income inequalities. Due to COVID-19 and other technological and social issues, the income gap between rich and poor widens very fast. Last year we observed that millions of people lost their jobs and apply for unemployment benefit while the stock prices are record high bringing enormous wealth to stockholders. Throughout this semester, we are going to research on how to visualize and calculate a degree of the inequality mathematically. For this, you need to learn about the Gini coefficient, the Lorenz curve, and their applications. Please use of your professors and/or reputable website/streaming (ie. youtube)/written sources and write down explicitly your answers to the following questions: 1. Define the Gini coefficient. 2. Define the Lorenz curve. What is the meaning of the Lorenz curve? 3. How can the Gini coefficient be computed? 4. What is the interpretation of the Gini coefficient? 5. (Example 1) The following table is actual Gini Coefficients for India, Kenya, Mexico, the United States retrieved from the World Bank. (Each index numbers are in terms of the percentage). Answer the questions using the table. Year Bangladesh India Kenya Mexico USA 1978 35 36 1983 31 1984 26 46 1986 27 39 1988 32 40 1989 29 1992 28 51 1994 31 52 1996 33 49 1997 43 1998 2000 33 2002 2004 2005 33 33 48 2006 2008 2010 32