DP Economics Questionbank

Using a Lorenz curve diagram, explain the possible impact on the distribution of income in the Philippines when “the income tax for the highest income earners has been raised from 30 % to 35 %” (paragraph [4]).

Calculate the percentage of income received by the highest 20 % in Country X. Enter your answer in Table 2.

Outline why Country X has a higher Gini coefficient, using the data in Table 2.

On the following axes, plot the Lorenz curve for Country Y.

Outline why the Gini coefficient must have a value between 0 and 1 (or between 0 and 100).

Explain how the Lorenz curve and the Gini coefficient are used to measure differences in income inequality between countries.

Using a Lorenz curve diagram, explain the likely impact on income distribution of “plans to encourage investment in rural areas”  (paragraph [5]).

Angola and Namibia have different Gini coefficient values. Using a Lorenz curve diagram, explain what this means (Figure 1).

Using the data in Figure 1, comment on the degree of income inequality in the United States (US), Sweden and Brazil.

Using your answer to part (f), sketch and label a Lorenz curve for Brazil and for Sweden in the following box.

Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.

Draw and label the Lorenz curve diagram for Country A on Figure 5.