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    shows the share of income going to each quintile of the income distribution for the United Kingdom in 1979 and 1991. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. How did inequality in the United Kingdom shift over this time period? How can you see the patterns in the quintiles in the Lorenz curves? Income distribution in the united kingdom, 1979 and 1991 Share of Income 1979 1991 Top quintile 39.7% 42.9% Fourth quintile 24.8% 22.7% Middle quintile 17.0% 16.3% Second quintile 11.5% 11.5% Bottom quintile 7.0% 6.6%

    Just from glancing at the quintile information, it is fairly obvious that income inequality increased in the United Kingdom over this time: The top quintile is getting a lot more, and the lowest quintile is getting a bit less. Converting this information into a Lorenz curve, however, is a little trickier, because the Lorenz curve graphs the cumulative distribution, not the amount received by individual quintiles. Thus, as explained in the text, you have to add up the individual quintile data to convert the data to this form. The following table shows the actual calculations for the share of income in 1979 versus 1991. The figure following the table shows the perfect equality line and the Lorenz curves for 1979 and 1991. As shown, the income distribution in 1979 was closer to the perfect equality line than the income distribution in 1991—that is, the United Kingdom income distribution became more unequal over time. Share of income received 1979 1991 Bottom 20% 7.0% 6.6% Bottom 40% 18.5% 18.1% Bottom 60% 35.5% 34.4% Bottom 80% 60.3% 57.1% All 100% 100.0% 100.0%

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Questions & Answers

what is demand
Sanni Reply
Sanni Saoban, Demand is a kind of need which is backed up by ability and willingness to pay.
Dipam
Demand is the various quantities of goods and services that a consumer is willing and able to buy at various prices within a given period of time
Sharon
Demand means desire for a commodity willingness and ability to purchased that commodity
Bhagabata
why should a firm close down when it's unable to pay it's variable cost?
ANDREW Reply
what is oligopolistic competitive market?
ngong
exchange of goods and services between countries is call
Hosea Reply
foreign trade
Peace
what is constant opportunity cost
Tiffany Reply
Constant opportunity cost means the value of sacrifice remains constant in every step.
Dipam
Gross Domestic Product GDP
Yusuf Reply
what is g d p
Jayapal Reply
gross daily performance
domingo
How best can a poor country respond to an economic crisis , what does it have to sacrifice.
Bah Reply
they should pay tax as progressive system and should make sacrifice for taxation of their income and land etc
Hamza
how have the nations tries to solve the problem of scarcity in their economies?
Amani Reply
total concentration on to reduce the per unit cost of commodity by technically or whatever
Hamza
explain what will happen to producer of green coconut now that we have to lockdown in the kingdom of tonga
Tuha Reply
the demand for coconut will decrease and supply increases which result in the decrease in the price of coconut and the coconut will be more elastic
Hamza
tonga is producing more long run economic good explain the meaning of the statement and its implication on the tonga economy
Tuha Reply
Demand is the various quantities of goods and services that consumer(s)are willing and able to purchase at a price within a time
Muhammad Reply
What is demand
Mc Reply
demand relates with the need of people for their satisfaction.
Mohd
demand is de amount of goods and services a consumer us willing to purchase at a given price over a given period of time
Osei
riDemand is the amount of good and services which consumers are willing and able to buy at a particular peroid of time and at a given price
Miguel
Yes that is the tire thing
samuel
Demand is the quantity of goods and services which consumers are willing and able to purchase at a given price over a period of time
Sundaybha
simply , Demand is the sum up of 1)- desire of the commodity 2)- purchasing power for that commodity
Hamza
demand is the amount of goods and service wen consumers are willing and able to buy them at a give time
Dora
Distinguish between cross elasticity and income elasticity of demand
Ruth Reply
Distinguish between cross elasticity and income elasticity of demand
Ruth
if change in the demand of the commodity with respect to change in demand of the substitute or other product called cross elasticity
Hamza
and. if change in the demand of the commodity due to change in the income . called income elasticity
Hamza
👍
Vipul
Cross elasticity of demand is the degree of responsiveness of quantity demanded of a commodity to a small change in price of another commodity whiles Income elasticity of demand is the degree of responsiveness of quantity demanded of a commodity to a small change in income of it's consumers
Afriyie
but these are book wordings
Hamza
income elasticity of demand shows how quantity demanded changes due to changes in income on the other hand cross elasticity refers to how the quantity demanded of a particular good alers given a change in the price of another good.
Keysie
what is the competitive demand
Adiza Reply
Income
Sanni
Competitive demand are those commodity dat are competitive in nature e.g the close up and my my toothpaste the increase in price of close up may bring abt decrease in demand of it and it will serve as increase in purchase of my my
Daniel
With regards to coal shortage and manicipal debts the what form of intervention do you think Eskom can put in place.
kedibone Reply

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Source:  OpenStax, Principles of economics. OpenStax CNX. Sep 19, 2014 Download for free at http://legacy.cnx.org/content/col11613/1.11
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