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Cumulative share of income (%)
100
s=w/q
B?
B?
u+n
100
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Cumulative share of the population
from lowest to highest income (%)
Assume an economy with three groups of citizens: The unemployed, the employed, and the
employers (owners). In this economy, u is the fraction of the population that is unemployed, n is the
fraction of the population that is employed, w is the real wage, q is the output per employed worker
and s = w/q is the wage share received by workers. How do you calculate the Gini coefficient
based on the figure above?
Select one:
Oa. The sum of areas B1, B2 and B3 divided by area A.
Ob. Area A divided by area B2.
Oc. Area A divided by the sum of areas A, B1, B2 and B3.
Od. Area A minus the sum of areas B1, B2 and B3.