Microeconomics
If the bottom 20% of households earn 5% of the total income, and the next 20% earn 10%, what is the cumulative income percentage for the bottom 40%?
If a country's Lorenz curve has an area A of 0.3 and area B of 0.7, what is the Gini coefficient?
What does a Lorenz curve that lies completely along the horizontal axis and then vertically at the end represent?
How is complete inequality represented on a Lorenz curve?
What does the line of perfectly equal distribution represent on a Lorenz curve?
How is the Gini coefficient calculated using the Lorenz curve?
In a real-world scenario, if a country's Lorenz curve is very close to the line of equality, what can be inferred about its income distribution?
On a Lorenz curve, what does the horizontal axis represent?
What does a Gini coefficient of 0.6 suggest about a country's income distribution?
What does a Gini coefficient closer to 1 imply about a country's income distribution?
