Th4.1: Measurements of Income Inequality

Question 1

Information on distribution of wealth and income tends to be presented in…

Answer 1

percentiles, deciles and quintiles

Question 2

Refer to PP

Look at Graph 20. What does the Lorenz curve show?

Answer 2

the cumulative percentage of the population plotted against the cumulative percentage of income that those people have

Question 3

Refer to PP

Look at Graph 20. What does the bend of the Lorenz curve demonstrate?

Answer 3

the degree of the bend away from a straight line indicates the degree of inequality - a perfectly equal society would have a straight line from corner to corner

Question 4

Refer to PP

Look at Graph 20. What is the formula for the Gini coefficient?

Answer 4

A + B

Question 5

What is the formula of the Gini curve?

Answer 5

the ratio of the area between the 45-degree line and the Lorenz curve divided by the whole triangle under the 45-degree angle

Question 6

The Gini coefficient is measured between…

Answer 6

0 and 1

Question 7

Gini coefficient: the bigger the coefficient…

Answer 7

the more unequal the country

Question 8

Draw the diagram three times please and label

Answer 8

actually do it