04135 Dilek Dortay: Attempt 2 individuals or households. the factors of producti

Question

04135 Dilek Dortay: Attempt 2 individuals or households. the factors of production (land, labor and capital). urban individuals or households O a) o Save Question 5 (2 points) Suppose two Lorenz curves cross, but produce same Gini index. This means, O a that inequality is necessarity tower for the curve cutting from below as we move from left to right that inequauity is necessarily higher for the curve cutting from below as we move from left to right that the countries have same level of inequality for any other index of inequality 5 d) that whether inequality is higher than lower depends on the society's values and priorities. 40 Save 45 Question 6 (2 points) in the picture below which statement is correct? 100

Explanation / Answer

Since Gini Coefficient remains the same for both the lorenz curve, thus the inequality remains the same for both the coubtries. Considering only the lorenze curve it is difficult to judge the level of inequality in two countries as for low levels of income the country whose lorenze curve is bear to the line of equality has more equality while for high levels of income the country whose lorenze curve cuts through the other country lorenze curve has more equality.

Related Questions

Navigate

• Browse (All)
• Browse
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.