Answer:
A. (a, the area between the diagonal line and the lorenz curve divided by the total area below the diagonal line)
B. (a, a perfectly unequal income distribution will have a Gini ration of 1.)
C. (a, more equal)
Explanation:
A. Gini ratio can be defined as the statistical determination of the wealth and income distribution among a country's populace.
It can also be called Gini coefficient or Gini index, and it is a measure of the inequality in income and wealth distribution.
The Gini ration is calculated by finding the difference between the Lorenz curve and the uniform distribution line, then divided by the total area under the uniform distribution line. A Gini ration of <0.2 is the perfect income equality.
B. Gini ratio cannot exceed 1 because a perfectly unequal income distribution will have a Gini ratio of 1. This means that the line of equality does not move irrespective of whether or not the Lorenz curve changes.
C. If the Gini ratio declines from 0.42 to 0.35, then that means that income has become more equal. Note that a Gini ratio of <0.2 signifies a perfect income distribution, slightly greater than 0.2 to ).35 signifies that income distribution is close to equality.
Cheers.
Answer:
a) Net Income = 68200
b) Tingler net income= 8645
Shocker net income=29655
Total net income=38300
c) No, because net income would decrease from 68200 to 38300.
Explanation:
Find the attachment for explanation/solution.
A mixed economy is where both private businesses and the government influence the factors of production.
Answer:
148.31
Explanation:
The normal price in dollars is (87.89)(2.25), and the 25% discount corresponds to multiplying this result by 0.75. Carrying out the arithmetic, the price is (87.89)(2.25)(0.75) = 148.31.
Answer:
Even when competitive firms are unable to calculate marginal revenue product directly, <u>competition in the labor market</u> will push wage rates toward the marginal revenue product of labor.
Explanation:
The labor market is made up of employers seeking for labor and employees offering their labor services. The law of supply and demand also applies to this market, when more employers are seeking employees, the price (= salary) will increase.
For example, if many companies are making a profit and they need more labor, the salaries will rise because the demand is rising.
Also the suppliers, the potential employees, compete against each other for the best possible jobs.
