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Hello, I need some help understanding these questions: Measuring inequality Consider the income inequality among four neighbors. Suppose they earn (in tens of thousands of
Hello, I need some help understanding these questions:
Measuring inequality Consider the income inequality among four neighbors. Suppose they earn (in tens of thousands of dollars) the following: 11=10, 12=50, 13=60, and 1440. For the following calculations, always express population shares and income shares as integers, i.e., 25% is 25 and not .25. 22. Consider area B in the Lorenz Curve diagram beginning with the lowest quartile. What is the value ofthe area under the Lorenz Curve in the first quartile (call it B I Calculate areas using straight lines as in class. For example, in class, Bl is the triangle under the line from (0,0) to (20,3) or 30. 23. What is the value of the area under the Lorenz Curve in the second quartile (not including the first or any other quartile)? Hint: this is the sum of a rectangle (B2) and a triangle (B3). 24. What is the value of the total area B? 25. What is the value of the area A in the Lorenz diagram? 26. What is the value of the Gini coefficient for this example?
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