Following are hypothetical data on the size distribution of income and wealth for each quintile

(one-fifth) of a population:

Quintile Lowest Second Third Fourth Highest Income 5% 10% 15% 25% 45%

Wealth 2% 8% 12% 20% 58%

(a) On the a graph, draw the line of absolute equity; then draw a Lorenz curve for income, and shade the area between the two curves.

(b) In the same diagram, draw a Lorenz curve for wealth. Is the distribution of wealth more equal or less equal than the distribution of income?

0 10 20 30 40 50 60 70 80 90 100 10 20 30 40 50 60 70 80 90 100 CUMULATIVE PERCENTAGE OF PEOPLE CUMULATIVE PERCENTAGE OF INCOME