The table below shows the size distribution of income for Fantasyland. a. Compute the cumulative percentage of total income. Fill in the table. b. On a scale diagram, with the percentage of households on the vertical axis and the percentage
a. Compute the cumulative percentage of total income. Fill in the table.
b. On a scale diagram, with the percentage of households on the vertical axis and the percentage of aggregate income on the horizontal axis, plot the Lorenz curve for Fantasyland.
c. How does the diagram show the extent of income inequality in Fantasyland?
d. Now suppose Fantasyland introduces a system that redistributes income from higher-income households to lower-income households. How would this affect the Lorenz curve?
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Percentage Household of Aggregate Cumulative Income Rank Lowest fifth Second fifth Third fifth Fourth fifth Highest fifth Income 6.8 14.1 Total 21.5 26.2 31.4
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a The completed table is shown below Household Percentage of Cumulative Income Rank Aggregate Percen…View the full answer
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