The Following Diagram Shows Three Lorenz Curves for Countries A

question 32

Essay

The following diagram shows three Lorenz curves for countries A, B, and C. The area between the Lorenz curve and the diagonal is 1,000 for Country A, 2,000 for Country B, and 2,500 for Country C. (The entire area under the diagonal is 5,000 because the area of the triangle is ½ × (base × height) = ½ × (100 × 100) = 5,000.)
(1) Calculate the Gini coefficient for each country.
(2) Based on the Gini coefficient, which country has the most equal distribution of income? Which country has the least?

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Definitions:

Effectiveness

The extent to which something achieves its intended or expected outcome.

Follower Attitudes

The perceptions, beliefs, and feelings that followers hold towards their leaders or the organizational context.

Perceptions

The process of interpreting sensory information to represent and understand the environment around us, or the way in which something is regarded, understood, or interpreted.

Career Success

The accomplishment of personal and professional goals over one's work life, often measured by advancements, recognition, and satisfaction.