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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

important of enocomic
Adu Reply
what is division of labour
Dennis Reply
division of labour can be defined as the separation of task to individuals in any economic system to specialize on it.
what is demand curve
Victoria Reply
demand curve is a downward sloping economic graph that shows the relationship between the price of product and the quantity of the product demanded.
What is demand
Frank Reply
It refers to the quantity of a commodity purchased in the market at a price and at a point of time.
refers to amount of commodities a consumer is willing and able to buy at particular price within a period of time
It is the ability and willingness a customer buys a product or service at a particular price, place and time while other things remaining constant or the same
In which case is opportunity cost is zero
Francis Reply
where no alternative is available
who is the father of economic
Omar Reply
Adam Smith
Adam Smith
Adam smith
Adam Smith
What is monopoly
Mauthoor Reply
it an economic situation where one individual controls the essential commodities or value product for maximum profit
monopoly is a market situation in which there is only one producer of a good or service which has no close substitutes
is where only one person is solely the price taker
what is Monopoly
Dauda Reply
The word Monopoly is a Latin word. it is the combination of two words-Mono means single and Poly means seller. thus Monopoly means single seller. but this is not the full meaning of Monopoly. Monopoly must produce a product which does not have close substitute in the market.
Monopoly is define as a firm in an industry with very high barriers to entry.
If close substitute is available, Monopoly will be a king without a crown.
what does it array
Cbdishakur Reply
what are the differences between monopoly and.oligopoly
Onome Reply
what are the difference between monopoly and oligopoly
The deference between Monopoly and Oligopoly: Monopoly means:A single-firm-Industry producing and selling a product having no close business and Oligopoly means:A market structure where a few sellers compete with each other and each controls a significant portion of market .
so that the price-output policy one affects the other.
what are difference between physical policy and monotory policy
what is economic
Emakpor Reply
what is economic
the word economic was derived from the Greek word oikos (a house)and mein(to manage) which in effect meant managing a household with the limited funds available 🙂.
good excample about scarsity
An Enquiry into the nature and causes of wealth Nations, this book clearly defined what economic is🙂🙂🙏🙏 thank you...
good example about scarcity: money,time, energy, human or natural resources. Scarcity of resources implies that there supply is very much limited in relation to demand.
equilibrium is a situation in which economic forces such as demand and supply are balanced and in the absence of external influences,the value of economic variables will not change
Onome Reply
marginal cost and marginal revenue is equilibrium .
what is equilibrium
Rodrice Reply
policy prescriptions for unemployment
Jeslyne Reply
Am working on it
what are the factors effecting demand sedule
Kalimu Reply
we should talk about more important topics, you can search it on Google n u will find your answer we should try to focus on how we can improve our society using economics
so good night
Why do people buy more grapes in December than in July?
because at time know money

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