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There are 20 people living in Jalle town. Eight (8) residents are farmers, each of whom earns$200 per year. Six (6) of them are fishermen,

There are 20 people living in Jalle town. Eight (8) residents are farmers, each of whom earns$200 per year. Six (6) of them are fishermen, each of whom earns $300 per year. Four (4) of the residents own small shops, each of whom earns $600 per year. Two (2) residents are mechanics and each of them earns an annual income of $1000. The total annual income of Jalle town is, therefore, $7,800.

a) Based on the information given above, fill out the table below

Population Quintiles

% of Income Received)

Poorest 0 %

Poorest 20%

Poorest 40%

Poorest 60%

Poorest 80%

Poorest 100%

b) Graph the Lorenz curve of Jalle town and compute the Gini coefficient.

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