Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 15.2, Problem 1ST
To determine
Distribution of income shares.
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Question 12
The following income distribution data are for Lesotho:
Quintile
Lowest 10%
Lowest 20%
Second quintile
Third quintile
Fourth quintile
Highest 20%
Percent Share
2.2%
3.0%
7.2%
12.5%
21.0%
56.3%
Explain how to find the Gini coefficient, graphically. (Hint: You might want to use labels on your
graph). You should be able to draw a graph on your computer, save it as a graph, picture, or
document, and upload that graph, picture, or document to your answer box. If you cannot do that,
you can always draw a graph on paper, take a picture, and upload the picture to your answer box.
In a society with 240,000 households, 10,000 households earn $4 each, 4,000 households earn $2 each, 10,000 households earn $10 each, and the rest earn $1 each.What is the income share of the third quintile? (Not the cumulative income share, just the share of that quintile.) Please write down the answer with two decimal points in percentage form without the % sign. XX.xx, NOT XX.xx%
Table: Income Distribution in Four Countries provides recent data from the World Bank on the distribution of income in
four countries.
Percent income top
quintile
Percent income
middle three quintiles
combined
O Bangladesh.
Costa Rica.
Table: Income Distribution in Four Countries
Bangladesh El Salvador
41.4%
46.4%
O Mexico.
50.0%
47.7%
8.6%
Percent income
bottom quintile
Based on the data, the country with the distribution of income that is closest to equal is:
El Salvador.
Mexico
50.1%
5.9%
44.2%
Costa Rica
54.0%
5.7%
41.8%
4.2%
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