Figure 18-9 -Refer to Figure 18-9 to Answer the Following Questions

question 12

Essay

Figure 18-9

-Refer to Figure 18-9 to answer the following questions.
a.Did the distribution of income become more equal in 2016 that it was in 2015, or did it become less equal? Explain.
b.If area A = 1,600, area B = 200, and area C = 3,200, calculate the Gini coefficient for 2015 and the Gini coefficient for 2016.

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Definitions:

Annual Pension Benefit

The amount of money an individual receives from a retirement plan each year after retirement.

Installment Note

A debt that requires the borrower to make equal periodic payments to the lender for the term of the note.

Periodic Payments

Payments that are made regularly over a period of time, such as monthly rent payments.

Warranty Expense

Costs associated with the repair or replacement of faulty products that a company sells, under its warranty policy.