# problem set 09 - <Income Inequality> Problem Set 9 Q1 In a...

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Chapter 2 / Exercise 24
Business Analytics: Data Analysis & Decision Making
Albright/Winston
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<Income Inequality> 1 | P a g e Problem Set 9 Q1. In a certain country, the population consists of five green people and five blue people. Each green person has an income of \$1 per year. Each blue person has an income of \$3 per year. (a) Draw a Lorenz curve for this country. (b) On your diagram, indicate clearly what area you would divide by what other area to calculate the Gini coefficient. (c) Calculate the Gini coefficient. Q2. Many companies are working to perfect “distance learning” technology, by which a single professor can teach students at dozens or even hundreds of colleges and universities. Using an appropriate framework, explain how such a technological change would affect the distribution of income among professors. Q3. How would the availability of student loans to finance education influence the relationship between inequality and the accumulation of factors of production? Q4.
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Chapter 2 / Exercise 24
Business Analytics: Data Analysis & Decision Making
Albright/Winston
Expert Verified