Income (percent of total)
-The table above shows the income distribution in the United States and Italy in a recent year.
a) Draw a Lorenz curve for the United States. According to your graph, what is the percentage of income received by the poorest 30 percent of households? The richest 10 percent?
b) On the same graph, draw a Lorenz curve for Italy. According to your graph, what is the percentage of income received by the poorest 30 percent of households? The richest 10 percent?
c) Draw the line of equality. How is it related to the Lorenz curve?
d) Is income distributed more equally in the United States or in Italy? Which country's Gini ratio is closer to zero? Explain your answers.
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a) See the figure above. The percentage...View Answer
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