help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Suppose country A has 100 citizens with two income groups

Suppose country A has 100 citizens with two income groups

Economics

Suppose country A has 100 citizens with two income groups. There are 10 people in high income group who make $90,000 a year and the rest are in the low income group and make $10,000 a year. Suppose country B has 100 citizens with two income groups. There are 10 people in high income group who make $99,000 a year and the rest are in the low income group and make $9,000 a year. Suppose country C has 100 citizens with two income groups. There are 5 people in high income group who make $105,000 a year and the rest are in the low income group and make $10,000 a year. 1. What is the Gini coefficient of country A? 2. What is the Gini coefficient of country B? 3. What is the Gini coefficient of country C? 4. Which country has the lowest inequality as defined by the Gini coefficient? 5. Which country would you rather live in? Explain.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

1

Country A, Citizzen = 100 , high income = 10 , high income earning = 90000 , low income earning = 10000

total income of high income group = 10*90000 = 900000

number of low income group people = 100 - 10 = 90

total income of low income group = 90*10000 = 900000

total income of country = 1800000

low income group share in population = 90/100 = 0.9

high income group share in population = 10/100 = 0.1

low income group income share = 900000/1800000 = 0.5

high income group income share = 0.5

Download Attached File

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)