14.4 Income inequality: measurement and causes  (Page 13/20)

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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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what is monopoly
is a structure where one seller of a commodity has no close substitute with very many buyers
rivan
tanx
Baku
a market structure where a particular good has no close substitutes
Koushik
examples railways
Shashank
what is income elasticity of demand.
percentage change in quantity demanded/percentage change in income
Koushik
or is the measure of degree of responsiveness o quality demanded o the commodity to change in the income of consumer
rivan
percentage change in quantity ÷ percentage change in income
Baku
what is medium
what is medium in terms of economics
Chinedu
as u mean medium of exchange or just as a word
rivan
Your question is not clear @Chinedu. In economics medium is often used in relation to time e.g medium term. So you need to be more specific on which medium you mean. Otherwise it "medium" means what it means everywhere else.
elizabeth
What is the difference between inferior goods and complementary goods
inferior goods are goods whose demand reduces as consumers income increases
rivan
while complementary goods are goods which are jointly demand
rivan
Wow thanks
Bernard
you are welcome
rivan
define the term derived demand
The Market equilibrium quantity is___ tons of bolts, the socailly optimal quantity of bolt production is ____ tons
please what are the key principles of Economics?
Amoako
how to learn about stock exchange market?
how to get to clearly know about BSE and NSE
jason
hiii
santosh
hii
Leela
hlo
Peter
Peter
Me too
Teremi
Search in web,
Leela
search in website
Leela
Search in web,
Leela
BSE means Bombay stock exchange,and NSE national stock exchange
Leela
What are the uses stastitics in business?
what's scarcity
scarcity is the stage at which your end becomes greater than your want.
Caasianebok
what is marginal rate of transformation
difference between individual demand and market demand with illustrations.
what is market demand
kwagala
Is the total amount of goods and services that all consumers are willing and able to purchase...
Istar
zahid
What is the different between demand and supply?
Demand is a natural phenomenon by a person who wants a certain commodity , u can say The ablity to buy a certain commodity at a certain price is called demand
Wardan
supply is point of view from Supplier of certain commodity
Wardan
Thnks wardan sheikh
Mohamud
u can get help from Law of Demand which is When a price of certain commodity increases it's quantity demanded decreases and when the price of certain commodity decreases it's quantity demanded increases and vice versa
Wardan
and to understand supply u can understand by the help of law of supply which is when a price of certain commodity increases it's quantity supplies also increases and when price of certain commodity decreases it's quantity supplies also decreases and vice versa
Wardan
Wardan
hi
Christian
hello
Victory
what is point?
Asmatullah
pls it's quantity supplied not quantity supplies. tanx
PETER
Peter it's just typing error if u know better u should take initiatives and start helping people or u can just shut up
Wardan
What is the labour market?
Ruchi
Ruchi Shukla it's a big topic which contains several parts , u can understand a market where there are number of employees (skilled and semiskilled )
Wardan
describe the economic systems
kivumbi
ryt nice
Destiny
what is the cause of a country's population
Destiny
Destiny Abekah the cause Is fun ahahahaha
Wardan
Hi
Crahmaan
What is going here?
Crahmaan
Hi
Jacob
what is naxion shoks any 1 can explain please
Iftikhar
hello
Hydrammeh
impact of transport and communication for economic help me
Jacob
according to me supply is the amount of goods and services that a seller is prepared to offer at a given prior of time while demand is the amount of goods and services that a consumer is enable and willing to pay at a given period of time ..... according to my understanding
rivan
What is the formula for calculating elasticity
Change in Quantity/Change in price
Abdul
ok
Destiny
E=%∆ in Q/ %∆ in P
ashafa
what mean elasticity
Jimcaale
change in quantity divided by change in price
mukhtaar
ok
Abdul
price elasticity = Q2-Q1/Q2+Q1/2/ P2-P1/P2+P1/2
Wardan
second formula is change in q / change in p × Q(original)/ p (original)
Wardan
Elasticity is just a measurement of change influenced by change in price , income
Wardan
change quantity /change in price
Ayaan
ok
change in price change in quality
yes
Thomas
calculations are mob eg cross elasticity,relevate n others mob which do u mean
rivan
public economy vs public choice
cool n you
Godwin
nice
Saratu
thank God
Destiny
so wat is going on
Destiny
Saratu
Saratu
demand changes when the price of the commodies in the market increaaes
Destiny
amd vise veser
Destiny
thank you.
Saratu
same to u
Destiny
I need help with PED and PES
Price elasticity demand
Saratu
price elasticity supply
Saratu