Suppose in Oklahoma we observe the following data on the distribution of income: Quintile ranking where 1 = lowest) % of income earned 1 3 2 11 3 19 4 27 5 40 Draw the appropriate Lorenz curve for this distribution Fully explain at least four of the major contributing factors that led to this observed distribution. Submit 05.05 Income Distribution. Please view the Grading Rubric before beginning the Assignment

Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Suppose that real interest rates increase across europe. this development will u.s. net capital outflow at all u.s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.