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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

why does a firm continue operating at a breakeven point
Prince Reply
to retain its customers for later coming profits.
this is because the firm's revenu is covering the variable cost so the firm should continuos business
what economic trend can we expect after lifting of 10 year long sanctions in an national economy?
tesfie Reply
difference between change in demand and change in quantity demanded
Maurice Reply
how to change
For a demand with repect to price. change in demand refers to the shifting of demand curve, where as change in quantity demanded means movement along the given demand curve.
According to lional Robbins how did he explain economics
Raphael Reply
He defined economics as a science which studies human behavior as a relationship between ends and scares which has alternative uses.
What is economics
Nasiru Reply
why are some countries producing inside the ppf
Claire Reply
prove or disprove that balance of trade of trade deficit is a cause of an abnormal demand curve?
Chioma Reply
what's the fixed cost at output zero
Saidou Reply
fixed cost stay the same regardless of the level of output
what are the differences between change in demand and change in quantity demand
Sulaiman Reply
what is consumers behaviour
Marfo Reply
importance of income
Emmanuel Reply
Tfor settlement of debt. For purchases. For payment of bills. For daily transactions. For social & recreational enjoyment. For business purposes etc
For investment purposes For security purposes For purpose of forecasting & strategizing.
what is the real definition of economics
jegede Reply
Economics is the study of the use and allocation of (scarce) resources
Jegede, what is the "non" real definition of economics then?
Economics is a study of how human use limited resources to fulfil their unlimited want
the study of how a society use scarce factors of production efficiently so as meet aggregate social demand
what is oligopoly?
Oligopoly can be defines as a market where by there is only tmo or more sellers of a commodity
Sory not tmo but two
incidence of production there is a choice do you agree? justify
Oduro Reply
What is incidence of production? do u mean incidence of tax?
I want to know about Richard lipsey and robin as the economist and their definition proposed by them
Musa Reply
what are the causes of scarcity And what are the goal scarcity
scarcity only exist because human wants are unlimited...if human just know how to be contented then scarcity will not exist
what is ment by possibility curve
define accounting?teatly
Ahmed Reply
Is the recording, classifying, interpreting record of all transaction
is still the act of measuring, interpreting and communicating of financial issues
measuring business or individual finance
Accounting is the process of collecting,recording,classifying,summarizing and interpreting/presenting financial data to the stakeholders for their economic decision making
wat is PPC

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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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