Figure 16.6 Figure 16.6 shows the Lorenz curves for Islandia and Syldavia.
-Refer to Figure 16.6.If area X = 2060, area Y = 240, and area Z = 2700, calculate the Gini coefficient for Islandia.

Question

Figure 16.6  Figure 16.6 shows the Lorenz curves for Islandia and Syldavia.
-Refer to Figure 16.6.If area X = 2060, area Y = 240, and area Z = 2700, calculate the Gini coefficient for Islandia.

Quizplus · Accepted Answer

The Gini coefficient is calculated as (A-B)/(A+B), where A is the area above the Lorenz curve and B is the area below the Lorenz curve. In this case, A = 2060 + 240 = 2300 and B = 2700 - 2300 = 400. Therefore, the Gini coefficient is (2300-400)/(2300+400) = 0.41.

Figure 166 Figure 16