Population
Quintiles Alpha’s Share of Income % Beta’s Share of Income % Lowest 20% 5 3 Second 20% 10 6 Third 20% 20 12 Fourth 20% 30 24 Highest 20% 35 55 1. The above table shows the distribution of income in two imaginary countries, Alpha and Beta. The share of income of each quintile are given for Alpha and Beta.
1. (2 points) Add a column of Cumulative Share of Income for Alpha and a column for Beta in the table. Fill the new columns with the cumulative percentage for both countries. (Refer to OpenStax Table 15.6 Calculating the Lorenz Curve)
2. (2 points) Use a graph panel like the above or draw your own graph panel, plot the Lorenz curves for Alpha and Beta.
3. (1 point) Compare the distribution of income in Alpha with that in Beta. Which distribution is more unequal?
4. (1 point) What would be the distribution of income in a country with perfect income equality?
