Economics 121 B & C
Quiz 6 Answers
Prof. A. D. Becker
 
Share of Aggregate (Total) Income Received by Each Fifth and Top 5 Percent of Families
Source: U.S. Census Department
Year
Lowest
Quintile
Second
Quintile
Third
Quintile
Fourth
Quintile
Highest
Quintile
Top 5
percent
1994
4.2
10.0
15.7
23.3
46.9
20.1
1984
4.7
11.0
17.0
24.4
42.9
16.0
1958
5.0
12.5
18.0
23.9
40.6
15.4
1. Using the data in the table above, draw the Lorenz curve for 1958. (Note: The "top 5 percent" are part of the "highest quintile." So, in 1994, families with incomes between the 80th and 95th percentiles received 26.8% of total income (46.9 - 20.1 = 26.8).)

 

2. Which year do you expect had the highest Gini index and which do you expect had the lowest? Remember: a low Gini index indicates greater income equality.

1958 would have the lowest Gini index. 1997 would have the highest.

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