Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Lorenz curve y=L(x)y=L(x) of a country plots the proportion of the total income of the population (y axis) that is cumulatively earned by the

The Lorenz curvey=L(x)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)(0.2,0.1) is on the Lorenz curve, it means that the bottom 20%20% of the population earns 10%10% of the total income. The curve of perfect equality is then the line y=x

The Gini index GG of a country is a number between 0 and 1 that measures income inequality within a country. The closer it is to 0, 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 L(x)=(11/16)*x^(2)+(5/16)*x

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Bridging Algebra, Geometry, And Topology

Authors: Denis Ibadula, Willem Veys

1st Edition

3319091867, 9783319091860

More Books

Students also viewed these Mathematics questions