i have a Marcoeconomice question have to ask.
who can draw a Lorenz Diagram to show inequality. and describe in one and two paragraphys why inequality tends to rise.
i got stuck in this question while doing my paper works.
so please help me out. Thank you!
2007-12-15 04:37:00 · 1 answers · asked by Janice 1 in Social Science ➔ Economics
See diagram at http://en.wikipedia.org/wiki/Image:Lorenz-curve1.png
The greater the area between the red line and the blue-green line the greater the income inequality. (Area = gini index) The blue-green line is for everyone having the same (average) income so the % of income is linear with the % people. For the red line the income per person (slope) is less than average for the poor and greater than average for the rich so the line is curved.
2007-12-15 06:04:06 · answer #1 · answered by meg 7 · 2⤊ 0⤋