1. With regards to the Lorenz Curve, what piece-wise function would represent perfect inequality in a...

1. With regards to the Lorenz Curve, what piece-wise function would represent perfect inequality in a population?

Income inequality has been shown to be inversely correlated with GDP for developed countries. In developing countries, incomes may be more equal solely because the entire population is below the poverty line.

1. Can you imagine a situation where higher income inequality would signify something positive about how incomes were changing?

2. What would the distribution of incomes look like in this case?

3. At what point do you expect high income inequality to reverse meaning for this type of population? How would you determine that?

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Expert Solution

Rahul Sunny answered 1 year ago

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