2. Constructing a Lorenz curve from income shares data The following table shows

Question

2. Constructing a Lorenz curve from income shares data The following table shows the approximate income distribution for Cambodia, Brazil, and Pakistan in 2011. In particular, it shows the income shares of each quintile of the income distribution Ferce tage ofTotal noome, 211 Income Group Ca Lowes qumie Scoond cuindla rhrd uinlil Fourth qumle Hghest quirdic B Past has the least total income On the following graph, plot the Lorenz curves for the three countries. Plot Cambodia's Lorenz curve using the green points (triangle symbol), Brazil's Lorenz curve using the blue points (circle symbol), and Pakistan's Lorenz curve using the purple points (diamond symbol) Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically has the least income inequality. (Hint: You may want to refer to your previous answers

Explanation / Answer

Yes, poverty threshold for 6 persons i.e., for two adults and four children is $30,056 but both parents earns a salary of $27,000. Since their total family income is less than $30,056, therefore, Rajiv and Simone are living in poverty.

Yes, poverty threshold for five persons i.e., for one adult and four children is $26,434 but Simone is earning $16,000. Since the income of the family is less than $26,434, therefore, Simone & her children are living in poverty.

Yes, poverty threshold for five persons i.e., for one adult and four children is $26,434 but even after qualifying for a welfare program for single parents, Simone is able to earn a total of $16,000 plus $3,000 which equals $19,000, which is less than $26,434. Therefore, even after receiving welfare Simone's family is living in poverty.

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