Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve...

   

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Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? b. (6) Explain how to use the information in Figure 2 to calculate the Gini coefficient. i. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Percentage of Income 0 Perfect Equality Line Lorenz Curve Percentage of Population Figure 2 100 2) (10) Describe the inequality in income and wealth between countries, and explain whether each has grown or shrank over the past 50 years. Why is wealth inequality greater than income inequality? Figure 2 below is an image of a Lorenz curve. a. (4) When the Lorenz curve sags lower, does that mean the economy is more equal or more unequal? b. (6) Explain how to use the information in Figure 2 to calculate the Gini coefficient. i. What is the typical range for Gini coefficients? ii. What does a high number indicate? 100 Percentage of Income 0 Perfect Equality Line Lorenz Curve Percentage of Population Figure 2 100 2) (10) Describe the inequality in income and wealth between countries, and explain whether each has grown or shrank over the past 50 years. Why is wealth inequality greater than income inequality?

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1a The more the lorenz curve sags down away from the line of equality higher the inequality will be 1b 2 Almost ten years after the Great Recession ca... View the full answer