Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Lorenz curve y = L(x) of a country plots the proportion of the total income of the population (y axis) that is cumulatively earned
The Lorenz curve y = L(x) of a country plots the proportion of the total income of the population (y axis) that is cumulatively earned by the bottom x of the population. For instance, if the point (0.2, 0.1) is on the Lorenz curve, it means that the bottom 20% of the population earns 10% of the total income. The curve of perfect equality is then the line y = x. The Gini index G of a country is a number between 0 and 'I that measures income inequality within a country. The closer it is to O, the more equal the income distribution is. The Gini index is defined as being twice the area between the line of equality y = x and the Lorenz curve y = L(x) of a country. Suppose that the Lorenz curve of a country is modeled by the function 18 5 L x = x2 + x ( ) 23 23 Find the Gini Index for this country. G= Check
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