Q1 What is Gini coefficient? Explain how Gini coefficient is derived from the Lorenz curve?

Q2 Suppose a hypothetical economy consists of 20 nonunionised private sector workers following annual earnings: $18,000, $9,000, $82,000, $12,000, $13,000, $76,000, $61,000, $14,000, $22,000, $23,000, $21,000, $46,000, $59,000, $26,000, $27,000, $37,000, $6,000, $41,000, $3,000, and $24,000.

Using annual earnings range of $10,000 (i.e. 0-$10,000, $10,000- $20,000, and so forth), construct a histogram (absolute frequency distribution) of this economy's distribution of personal earnings. What is the mode of the histogram? What is the average (mean) level of earnings? What is the medium level of earnings? Characterize the distribution as being normal, skewed leftward, or skewed rightward. Explain.

Q3 Specify the reasons for the recent increase in income inequality.

Q4 Critically evaluate this statement: "Lifetime earnings are less equally distributed than annual earnings."