Figure 21.1 : The above figure shows the Lorenz curve for a hypothetical country.
-Refer to Figure 21.1. If Area I = 1,700 and Area J = 3,300, what is the Gini coefficient?

Question

Figure 21.1 :  The above figure shows the Lorenz curve for a hypothetical country.
-Refer to Figure 21.1. If Area I = 1,700 and Area J = 3,300, what is the Gini coefficient?

Quizplus · Accepted Answer

The Gini coefficient is calculated as the area between the line of equality and the Lorenz curve (Area I) divided by the total area under the line of equality (Areas I + J). Given Area I = 1,700 and Area J = 3,300, the Gini coefficient = Area I / (Area I + Area J) = 1,700 / (1,700 + 3,300) = 1,700 / 5,000 = 0.34.

Figure 211 : the Above Figure Shows the Lorenz Curve