SOLVED

  Household percentage Average income (dollars) Lowest 20 percent  10,000 Second 20 percent  26,000 Third 20 percent  38,000 Fourth 20 percent  55,000 Highest 20 percent 140,000 Household percentage Percent of income Cumulative percentage of income Lowest 20 percent ___ ____ Second 20 percent ___ ___ Third 20 percent ___ ___ Fourth 20 percent ___ ___ Highest 20 percent ___ ___ 3) The first table above gives the average income received by each 20 percent group of households. Complete the second table. Label the axes above and then plot the Lorenz curve.  Household percentage Cumulative percentage of income Country A Cumulative percentage of income Country B Lowest 20 percent  10    4 Second 20 percent  25    9 Third 20 percent  45  18 Fourth 20 percent  70  40 Highest 20 percent 100 100 4) The table above gives cumulative percent of income received by each 20 percent group of households. Label the axes in the figure above and then plot the Lorenz curves. In which nation is income more equally distributed? 5) On a Lorenz curve graph, the area between the line of equality and the Lorenz curve is 2,000, and the entire area beneath the line of equality is 5,000. What does the Gini ratio equal?