ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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seeing how rich our people are
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seen as a measure of the fairness of the society we live in
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comparing our incomes
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comparing how rich New Zealand is to other countries
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Detailed explanation-1: -The Lorenz curve is a graphical representation of the distribution of wealth in a society. The further away from the bisector the curve is, the greater the inequality. The Gini coefficient, derived from the Lorenz curve, is the most widely used measure of income inequality in a society.
Detailed explanation-2: -Inequality is seen as fair when it is considered consistent with broadly shared normative rules. Disagreements arise from ambiguities in whether these normative rules have been violated. Fairness judgments are affected by information, self-interest, group-interest, and system justification.
Detailed explanation-3: -Economic. Less equal societies have less stable economies. High levels of income inequality are linked to economic instability, financial crisis, debt and inflation.
Detailed explanation-4: -Gini index It is the most widely cited measure of inequality; it measures the extent to which the distribution within an economy deviates from a perfectly equal distribution. The index is computed as the ratio of the area between the two curves (Lorenz curve and 45-degree line) to the area beneath the 45-degree line.