Consider an economy with a particular distribution of income. Over the next 10 years, the income of ALL households increases by exactly $20,000. How will the Gini coefficient change over those 10 years?Group of answer choicesThe Gini coefficient will decrease.The Gini coefficient will stay the same as all households received the same increase in income.The Gini coefficient will become more negative.It is impossible to determine how the Gini coefficient will change as it will depend on the original income distribution.The Gini coefficient will increase.

Which of the following is likely to cause an increase in income inequality?An increase in the minimum wageAn increase in the number of successful people marrying other successful peopleA decrease in assortative matingAn increase in the Gini coefficient

2. In a given country, there are 5 people that earn $1 per year and 5 people that earn $ 3 per year.(a) Draw the Lorenz curve for this country.(b) On the diagram indicate (using the areas) how you would calculate the Gini coefficient

Fill in the BlanksType your answers in all of the blanks and submit- current answer: <p id="">The graph that is used to depict income inequality, showing the percent of households along the &lt;blank&gt; axis and the percent of income along the &lt;y&gt; axis is known as the &lt;l&gt;curve.&nbsp;</p> <p id="">- br -</p> <p id="">If income were perfectly equally distributed within a country, the value of the Gini ratio for that country would be &nbsp;&lt;z&gt;.&nbsp;</p> <p id="">- br -</p> <p id="">The distribution of wealth tends to be &nbsp;&lt;more&gt; (more/less) unequal than the distribution of income.&nbsp;</p> <p id="">- br -</p> <p id="">The closer a Lorenz curve is to a 45-degree straight line, the more &lt;e&gt; (equal/unequal) the distribution of income.&nbsp;</p> <p id="">- br -</p> <p id="">A Gini coefficient of 0.80 would be considered a highly &lt;e2&gt; (equal/unequal) &nbsp;distribution of income.</p> <p id="">- br -</p>The graph that is used to depict income inequality, showing the percent of households along the blank - Word AnswerWrite your response here... axis and the percent of income along the y - Word AnswerWrite your response here... axis is known as the l - Word AnswerWrite your response here...curve. If income were perfectly equally distributed within a country, the value of the Gini ratio for that country would be  z - Numeric Answer. The distribution of wealth tends to be  more - Word AnswerWrite your response here... (more/less) unequal than the distribution of income. The closer a Lorenz curve is to a 45-degree straight line, the more e - Word AnswerWrite your response here... (equal/unequal) the distribution of income. A Gini coefficient of 0.80 would be considered a highly e2 - Word AnswerWrite your response here... (equal/unequal)  distribution of income.

In the year 2010, suppose the Gini ratio for Canada was 0.30 and the Gini ratio for the US was 0.50. In the year 2015, suppose the Gini ratio for Canada rises to 0.35. Which of the following statements is true?Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aCanada has greater inequality than the US. bCanada has greater inequality in 2015 than it did in 2010.cThe US has greater equality than Canada.dBetween 2010 and 2015 Canada’s Lorenz curve has become straighter (closer to the diagonal).

How does the income effect impact the consumption of Giffen goods? An increase in income leads to less consumption A decrease in income leads to more consumption An increase in income leads to more consumption Both a) and b)