Question Two :

Discuss the Malthusian population theory and how technological and social progress allows nations to avoid the population trap. Then state the criticism of this theory. Question Three: The following income distribution data are for Ghana. Quintile Percent Share Lowest 20% 6.0% Second quintile 9.5% Third quintile 15.2% Fourth quintile 25.3% Highest 20% 44.0% (a) Carefully graph the Lorenz curve, labeling the axes. (b) Explain how to find the Gini coefficient, graphically. (c) Ghanas national income is about $500 billion. What is the approximate dollar income of the bottom 20%? Bottom 40%? (d) Suppose one percent of national income was transferred from the richest 20% of households to the poorest 20% of households. Show the effect on relative inequality. (e) Lorenz curve and Gini coefficient are considered the most frequently used measures of income inequality. State one more measure that can be used to measure the degree of income inequality inside a country.