Need help with #1 and #3 please

Name/I.D. Number: Chapter 15 or 28 Income Distribution and Poverty: Pre-Class & In-Class Activities Packet Part 4. Economic Equations and Graphs Section:_ Date: Answer questions 1 and 2 based on Exhibit 2 below: 3. a. In the graph below, using Lorenz curve 2 (LC2), approximately what percentage of income goes to the second-highest 20 percent of Exhibit 2 Distribution of Household Income Shares, 1967 & 2015. households? (Hint: first, find the cumulative percentage of Income for 80% of cumulative households and then, find the cumulative percentage of 9 89 8 Income for 60% of cumulative households). 55% - 35% = 20%. b. Which Lorenz curve represents better income distribution, LC, or LCz? Why? 8 90 108 c. Calculate the Gini Coefficient for Lorenz Curve 1 (LC,), assuming that Second Third Fourth Highest Fifth the size of area "a" is 20 square inches and the size of area "b" is 40 square Fifth Bottom (Third Fifth Quintile) (Second Quintile) Fourth inches, i.e. the size of area "a" is 1/2 of the size of area "b"(Hint: use the Quintile) Quintile) 1067 formula and the example on page 6 to calculate GC.). 100 Line of Perfect Income 8 Equality Lowes! Second Third Fourth Highest Fifth Fifth Fifth Fifth (Bottom (Second Third Fourin CTOP Suinta Quintile) Quintile) Quintile) Quintile) Cumulative Percentage of Income 2015 Lorenz Curve 1 1. Compare the U.S. income distribution in 1967 with the income distribution 9 8 in 2015. Which quintile(s) (group(s)) has/have shown decrease? Increase? Lorenz curve 2 Why ? 2. Compare the percentage of total money income received by U.S. households between 1967 & 2015? What is the percentage change in the & O 40 60 80 100 money income received in 2015 as compared to 1967 for the top fifth? Cumulative Percentage of Households Why