This topic contains a solution. Click here to go to the answer

Author Question: Refer to Figure 18-8 to answer the following questions. a. Did the distribution of income become ... (Read 99 times)

itsmyluck

  • Hero Member
  • *****
  • Posts: 546
Refer to Figure 18-8 to answer the following questions.
 
  a. Did the distribution of income become more equal in 2016 than it was in 2015, or did it become less equal? Explain.
  b. If area A = 1,900, area B = 450, and area C = 2,650, calculate the Gini coefficient for 2015 and the Gini coefficient for 2016.

Question 2

As a percentage of GDP, federal expenditures ________ from 1950 to the early 1990s, ________ from 1992 to 2001, and have ________ since 2001.
 
  A) rose; rose; fallen B) fell; rose; fallen C) rose; fell; risen D) fell; fell; risen



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

otokexnaru

  • Sr. Member
  • ****
  • Posts: 314
Answer to Question 1

a. The distribution of income became less equal in 2016. The Lorenz Curve for 2016 is farther from the diagonal line of equality than is the Lorenz Curve for 2015.
b. The Gini Coefficient = (the area inside the Lorenz Curve)/(the area beneath the diagonal line of equality). Thus, for 2015, the Gini Coefficient = (A)/(A + B + C) = 1,900 /5,000 = 0.38. For 2016, the Gini Coefficient = (A + B)/(A + B + C) = 2,350 /5,000 = 0.47.

Answer to Question 2

C





 

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

For a complete list of videos, visit our video library