Lorenz curves also can be used to provide a relative measure of the distribution of the total assets of a country. Using data in a report by the economic committee of a certain country, an economist produced the following Lorenz curves for the distribution of total assets in the country in 1963 and 1983, shown below. f(x) = x10 Lorenz curve for 1963 gx) = x3 Lorenz curve for 1983 Find the Gini index of income concentration for each Lorenz curve and interpret the results. What is the Gini index for 1963? (Round to three decimal places as needed.) What is the Gini index for 1983? O (Round to three decimal places needed.) Interpret your results. O A. Total assets were more equally distributed in 1963 O B. Total assets were more equally distributed in 1983 Oc. Total assets were distributed the same in 1963 as in 1983.
Lorenz curves also can be used to provide a relative measure of the distribution of the total assets of a country. Using data in a report by the economic committee of a certain country, an economist produced the following Lorenz curves for the distribution of total assets in the country in 1963 and 1983, shown below. f(x) = x10 Lorenz curve for 1963 gx) = x3 Lorenz curve for 1983 Find the Gini index of income concentration for each Lorenz curve and interpret the results. What is the Gini index for 1963? (Round to three decimal places as needed.) What is the Gini index for 1983? O (Round to three decimal places needed.) Interpret your results. O A. Total assets were more equally distributed in 1963 O B. Total assets were more equally distributed in 1983 Oc. Total assets were distributed the same in 1963 as in 1983.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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