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Initial Gini coefficient: 0.40 Gini coefficient: after land tenure reform: 0.15 The figure shown gives the Lorenz curves when 90 100- farmers and 10 landowners
Initial Gini coefficient: 0.40 Gini coefficient: after land tenure reform: 0.15 The figure shown gives the Lorenz curves when 90 100- farmers and 10 landowners share the crop 50:50 Landowners' share of 75 (kinked solid line) and 75:25 (kinked dotted line). initial income Recall that the Gini coefficient is calculated by A/(A + Cumulative share of income (%) 50 B), where A is the area between the 45-degree line and the Lorenz curve, and B is the area below the Farmers' share of 25 Lorenz curve Lorenz curve. Based on this information, which of the initial income shifts due to land tenure following are correct? reform 0 90 100 Select all correct answers 90 farmers 10 landowners a. A + B = 10,000. b. Under the 50:50 sharing, A = 2,000. Cumulative share of the population from the lowest to the highest income (%) c. Under the 75:25 sharing, A = 1,500. d. The Gini coefficient under 75:25 sharing is A/(A + B) = 750/5,000 = 0.15
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