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3 years ago

What does the Lorenz Curve illustrate about the economy?

Business

1 answer:

Alex_Xolod [135]3 years ago

6 0

Answer:

Lorenz curve can be understood as a graphical representation of distribution of wealth or income among the population in a given economy.

Explanation:

Lorenz Curve was proposed by Max O. Lorenz in the year 1905 to represent inequality in the distribution of income among the given population. This curve illustrates that the distribution of wealth is not equal, where one section of the population has all the wealth or income of the economy and the other section of the population is left with none. Whereas in the case of perfect equality, each section of the population should receive an equal amount of wealth of the economy. This means that N% of the society should always have N% of income and not more and not less than that. Thus, this situation is hypothetical and thus, the idea of the Lorenz Curve comes into consideration.

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natita [175]

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3 years ago

Assume the smart watch industry is a perfectly competitive industry that uses a specialized input. If this industry experiences

RideAnS [48]

Answer:

Option B, both input and output prices will increase

Explanation:

Since the demand far smart watches is increasing, the price of watches will escalate to cater the opportunity cost. With the rising demand for smart watch, the demand for specialized input will also increase. Considering the growth in demand for specialized input, its cost shall also escalate to take the benefit of opportunity. Along with raw material, variable costs such as transportation, manpower, electricity etc. will also increase both in input (bringing raw material and producing final product) and output (export of the final product)

In nut shell, both the input and output price will increase.

5 0

3 years ago

Department S had 500 units 70% completed in process at the beginning of the period, 7,600 units completed during the period, and

Rudik [331]

Answer:

7,727 units

Explanation:

According to the scenario, computation of the given data are as follows:

Department S beginning = 500 units

Completed % in process = 70%

Total completed during period = 7,600 units

End of period = 900 units 53 % completed

So, we can calculate the units of production using FIFO method.

Check attachment for the Solution.

The attachment is attached below.

3 0

3 years ago

You have just sold your house for $ 1000000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and

DedPeter [7]

Answer:

cash will you have from the sale once you pay off the mortgage is $ 510194.55

Explanation:

given data

sold your house = $1000000

time t = 30 year = 360 month

initial balance P = $750,000

mortgage currently exactly = 18½ years = 138 months

interest rate r = 7.75 % = 0.646% per month

solution

we get here monthly loan payment that is

C = P ÷ $\frac{1}{r} \times (1-\frac{1}{(1+r)^n})$ ...............1

Putting values in formula we get

C = 750,000 ÷ $\frac{1}{.00646} \times (1-\frac{1}{(1+0.00646)^{360}})$

C = $5374.12

so monthly payment is $5374.12

and here Balance after 18.5 year will be

Balance after 18.5 year = $5374.12 × $\frac{1}{0.00646}$ × $(1-\frac{1}{1.00646^{138}})$

Balance after 18.5 year = $489805.45

and

we received here $1000,000 excess cash received is

cash received = 1000,000 - 489805.45

cash received = $ 510194.55

4 0

4 years ago

In 2014, the United States defined poverty as the state in which anyone is surviving on less than $1. 25 a day. $5. 25 a day. $1

SIZIF [17.4K]

In 2014, the United States defined poverty as the state in which anyone is surviving on less than $32.00 per day.

<h3>What are the measures of poverty?</h3>

Poverty can be measured with current income condition of an individual to fulfil the basic necessities of life. It focuses on poverty measures such as income, food, and housing access, among others.

It is calculated by keeping in mind three factors which are as follows-

· Basic needs of individual

· Income before paying tax

· Inflation or change in the price of goods and services

The physical poverty model is widely used in income poverty surveys to assess lack of access to financial opportunities, to meet basic fundamental requirements. If a person's earnings is insufficient to purchase the amount of goods and services used to define poverty, they are considered poor.

In 2014, United States considered people as below poverty lines whose daily earning is less than $32.00 per day.

Learn more about poverty refers to:

brainly.com/question/25892577

#SPJ1

8 0

3 years ago