Open In App

Warning: foreach() argument must be of type array|object, bool given in /var/www/html/web/app/themes/studypress-core-theme/template-parts/header/mobile-offcanvas.php on line 20

Chapter 30: Q.2 (page 689)

Consider the following estimates from the early 2010s of shares of income for each group. Use graph paper or a hand-drawn diagram to draw rough Lorenz curves for each country. Which has the most nearly equal distribution, based on your diagram?

Short Answer

Expert verified

Uruguay has the most nearly equal distribution based on the diagram

Step by step solution

Given Information

The Lorenz curve is the realistic technique for concentrating on scattering. Showing the degree of light scattering between equivalent circulation and real conveyance of a variable is utilized.

Explanation

Green curve - Uruguay

Red curve - Chile

Blue curve - Bolivia

Uruguay has the most nearly equal distribution

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Consider the graph nearby, which depicts Lorenz curves for countries X, Y, and Z.

a. Which country has the least income inequality?

b. Which country has the most income inequality?

c. Countries Y and Z are identical in all but one respect: population distribution. The share of the population made up of children below working age is much higher in country Z. Recently, however, birthrates have declined in country Z and risen in country Y. Assuming that the countries remain identical in all other respects, would you expect that in 20 years the Lorenz curves for the two countries will be closer together or farther apart? (Hint: According to the age-earnings cycle, what typically happens to income as an individual begins working and ages?)

Who provides the more than $100 billion that Medicare spends on prescription drugs each year?

Describe how to use a Lorenz curve to represent a nation's income distribution

Based on your answers to Problems 30-13 and 30-14, when A increased, did the degree of income inequality increase or decrease? Explain why your answer makes sense by referring to the implied change in the shape of the Lorenz curve.

Why do you suppose that choosing other increments besides $15,000 or $30,000 can yield even more distributional variations of households within these seven income groupings?

(Hint: what do you think could happen if one were to broaden the income increments to $100,000 or narrow them to $5,000 while holding the number of income groups equal to seven?)

See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free