Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Determine the Gini coefficient for a given situation. This graph depicts the income inequality in a country using the Lorenz curve. The horizontal x-axis represents
Determine the Gini coefficient for a given situation. This graph depicts the income inequality in a country using the Lorenz curve. The horizontal x-axis represents the percentage of families, and the vertical y-axis depicts the percentage of income. Both axes are divided into increments of 20, ending at 100. A vertical line at x = 100 means that one person earned 100% of the income in the country. However, this is a hypothetical scenario. The perfect income equality is depicted by a line that cuts the graph at 45 degrees. The reality of the population's income depicted on the graph is listed next. Approximately 20% of the nation's families earn 1% of the total income. 40% of the nation's families earn less than 20% of the total income. 60% of the nation's families earn less than 40% of the total income. 80% of the nation's families earn around 60% of the total income. Joining these data points on the graph shows us the actual income inequality in a country. Given the above graph of a country's Lorenz Curve, how would we describe this country's income distribution
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started