Revenue for each of the four teams in the Professional Nintendo gaming league are given below

Team George: $40,000

Paul : $ 10,000

Ringo : $10,000

John : $ 20,000

Construct a Lorenz curve for this gaming league, and calculate its Gini coefficient

i) Which of the diagram accurately depicts the Lorenz curve for this gaming league

a) Diagram A

b ) B

c ) C

d) D

ii) The Gini coefficient for revenue in this league is

a. 0.3125 b. 0.5 c. 0.6875 d. 0.75

Succumbing to the protestations of Teams Paul and Ringo, the gaming league commissioner agrees to a small % luxury tax on any Team making in excess of $20,000 in revenues. This tax revenue will be distributed equally among those Teams making less than $20,000. Assume the luxury tax does not alter the rankings of revenues in your table above, not does it affect mean revenues for the league as a whole( what would happend to the C.O.V. however)

iii) This luxury tax will --- the Gini coefficient of revenues in the gaming league and cause the Lorenz curve to --- the line of perfect equality

a) Lower; move further away from

b) Lower ; mover closer to

c) Raise ; more further away from

d) Raise ; move closer to

Over time, the luxury tax begins to limit the ability of the league's marquee franchise, Team George, to draw top gaming talent. As a result, national broadcast revenues, which are shared EQUALLY among the four teams , drop.

iv) This further development will most likely--- the Gini coefficient of revenues in the gaming league and cause the Lorenz curve to --- the line of perfect equality.

a) Lower; move further away from

b) Lower; move closer to

c) Raise ; more further away from

d) Raise ; move closer to

I want to compare with my answer.

Thank you

below graph is for (i)

REVENUES 100 100 75- of REVENUES 75 + 50+- 507 12,5 12.5 75 % of TEAMS 100 25 50 % of TEAMS 75 100 C D of REVENUES 100 100 75 751 50 50 25 25 12.5 12.5 25 50 75 100 25 50 75 100 % of TEAMS