Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could you please assist with this question? Consider the following table. Real Gross Income per Household Real Disposable Income per Household 2013-14 2021-22 2013-14 2021-22

Could you please assist with this question?

image text in transcribed
Consider the following table. Real Gross Income per Household Real Disposable Income per Household 2013-14 2021-22 2013-14 2021-22 Lowest quintile $27,535 532,403 $47,578 554,134 Second quintile 566,740 571,434 580,796 586,689 Third guintile 5121,841 $124,806 5114,501 $117,495 Fourth quintile 5178,776 5185,100 5149,829 5154,434 Highest quintile 5366,395 5378,541 $274,108 5288,311 Source: ABS (2022) Australian National Accounts: Distribution of Household Income, Consumption and Wealth, Table 3.2, 3.6 and 3.11. Figures converted to real 2021-22 dollars using ABS(2023) Cansumer Price Index, All Groups CPI, Weighted Average of 8 Capital Cities, Table 1. a. Complete the following table by calculating Atkinson-Kolm SWF for = 0, 1, 2 and inequality for =1,2 for 2013-14 and the % change in each measure from 2013 -14 to 2021-22. (10 marks) Gross Income per Household Real Disposable Income per Household 2013-14 2021-22 2013-14to2021-22 2013-14 2021-22 2013-14 to 2021-22 SWF A(e=0) $158,457 $140,213 SWF A(e=1) $115,146 $119,677 SWF A(e=2) 582,079 $103,172 Inequality A(e=1) 0.2733 0.1465 Inequality A(e=2) 0.4820 0.2642 b. Interpret SWF A(e=1) and Inequality A(e=1) for Real Disposable Income in 2021-22. (8 marks) C. Explain why the value of the Atkinson-Kolm social welfare decreases as increases. (4 marks) d. Why in 2021-22 for example, is SWF A(e=0) higher for Gross Income but lower for Disposable Income, but the reverse is true for SWF A(e=2) it is higher for Disposable Income than Gross Income? (4 marks) e. From 2013-14 to 2021-22, SWF A(e=2) is growing faster than SWF A(e=0) for both Gross income and Disposable Income. Explain this result. (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding The Law

Authors: Donald L Carper, John A McKinsey, Bill W West

5th Edition

0324375123, 9780324375121

More Books

Students also viewed these Economics questions

Question

What types of objects can be thrown?

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago