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Income Distribution

Income is most often earned through wages and is what an individual receives for their hours of labour or investments. The government usually taxes an employee’s income and the government, allocated by the federal budget, uses the revenue of income taxes. If a family’s level of income is less than the average income level, necessary goods and services can become too expensive and this creates the possibility for the family to fall into poverty.

Income can be thought of as GDP per capita and is often an indicator of economic growth and development. Typically as the GDP per capita a economy is likely developing. But, just looking at GDP per capita ignores the effect of income distribution. The GDP per capita, for example, can grow from only an increase in incomes of the wealthiest 0.5% of the population and the poorest can even be getting poorer. This is not a situation of good economic development even though GDP per capita is rising. 

Income distribution measures the amount of income earned by different divisions within the population. The Lorenz curve models how income is distributed throughout a community and measures income inequality. The Gini coefficient measures inequality as a statistical measure among frequency distributions. These two measures provide both a graphic and a quantitative representation of income distribution respectively. 

Income inequality is a prevalent issue in the United States and many other countries, which is why income distribution an important topic in macroeconomics.

Monetary Policy for the Federal Reserve

***This is not a request for a written paper, but points to expound on.*** Write a short (2-3 page, typed, double-spaced) essay. Present a thorough analysis of monetary policy. Detail the key factors that influence the quantity of money that people desire to hold, the policy actions taken by the Federal Reserve, and the equati

Tariffs: Pros and Cons

Please help me with at least 1400 words on the pros and cons of tariffs. Please reference at least 3 academic resources


What is the difference between GDP and GNP? Which is a more accurate measure of local income and why? I understand the difference between GDP and GNP however, I am unsure on how to answer the second question as to which one is more accurate with regards to local income and why. Thank you for your help!

AutoEdge Solution - Economic Market Structures

At midday, you share an elevator ride with AutoEdge's Executive Vice President, George Wirtz. "Ingrid tells me you gave her some useful information about the relocation issue," he says. "I could use your help with a presentation I'm making next week to a group of large shareholders." "Of course," you say. "How can I help

Components of the GDP

There are probably a thousand macro economic indicators, some measure the overall national economy, some are more limited in scope. The three most often quoted and publicized are the Gross Domestic Production Index (GDP), the Consumer Price Inflation Index (CPI) and the Unemployment Index. Please complete the short answer questi

Production Possibilities Curve, Economic System

1.The production possibilities curve is an important model of how much an economy can produce given resources and technology. a. What characteristic of the economy causes the production possibilities curve to bow outward. Explain. 2. The Circular Flow diagram is model of how the economy works. Explain how the model woul

Corporate Financial Management (ACME)

ACME Corporation consists of 250 grocery stores throughout the Midwest. At the beginning of 2008 its statement of net worth showed the following information: Common Stock ($1 par) $400,000; Capital paid in excess of par $1,400,000 and retained earnings $500,000. During the year, net income equaled $160,000. Management was undeci

The Longevity of Businesses

Task: Fiskars, since 1649...The manufacturer of these products (and many others) has been in business for over 350 years.Your task is to find two more businesses which have also been around for at least over 100 years. Your research should focus on the other companies longevity and the economic reasons for this phenomena. Plea

Price Discriminate

Find 2 companies in the geographical location you live in and find out if they "price discriminate." Why do these 2 companies "price discriminate?" In what ways do they "price discriminate?" Have these companies faced any negative feedback or press in terms of their pricing behavior? How is Chapter 10's treatment of price di

Water use

Consider two methods for achieving less water use in a community. The first method includes trying to convince people to apply water conservation measures and to use less water at current prices. The second method involves driving up the price of water. Discuss the merits of both approaches. Which one do you think would be more

Meaning of the Gini coefficient

Please help answer the following problems. Suppose France has a Gini coefficient of 0.4, and Germany has a Gini coefficient of 0.3. Which of the following conclusions are we able to make with this information? a) The ratio of the total income of the lowest quintile of the income distribution to the total income of the hig

economics of population growth

(a) How quickly will a country with a real national income growth rate of 1% per year double its national income? 1- What if the national income growth rate is 3%? 2- In each case, what is the rate of income per capita growth if population is growing at 2% per year? 3- Using the information in part c above, how many years

Poverty concepts including P2, headcount ratio, and poverty gap

7. Consider a 10 person economy. The poverty line is 1. In the first period the income distribution is: (.5,.5,.75,.75,1,1,1.5,1.5,2,2). a. What is the level of poverty? Answer utilizing headcount ratio, [normalized] poverty gap, and P2 measures. b. Suppose that in the next period one of the individuals making 1.5 now make

Lorenz Curve

Consider a 12-person stylized dual economy with the following income distribution: (1,1,1,1,1,1,1,1,1,4,4,4,4) 1- Graph the Lorenz curve. 2- Calculate The Gini coefficient 3-Now suppose the incomes of two members increase from 1to 4. Graph the Lorenz curve (you may use your graph in part1, distinguish which curve applies h

A pricing strategy is advised.

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Cash Distribution and Capital Structure

Please see attached. The Henley Corporation is a privately held company specializing in lawn care products and services. The most recent financial statements are shown below. Income Statement for the Year Ending December 31 (Millions of Dollars) 2010 Net Sales $800.0 Costs (except deprec

AFN problem

A firm has the following balance sheet: Cash $ 20 Accounts payable $ 20 Accounts receivable 20 Notes payable 40 Inventory 20 Long-term debt 80 Fixed assets 180 Common stock

When it comes to econ I am soo lost! Please help me understand!

3(a). Starting with the estimated demand function for Chevrolets given Problem 2, assume that the average value of the independent variables changes to n=225 million, i=$12,000, Pf= $10,000, Pg= 100 cents, A= $250,000, and if Pi= 0. Find the equation of the new demand curve for Chevrolets. (b)* Revised 3(b): If Pc is $10,000


4. How much will a 15% increase in sales increase a firm's net operating income (NOI) and increase its net income (NI), if: (a) its degree of operating leverage (DOL) = 2.0, and its (b) degree of financial leverage (DFL) = 3.0? (b) its (c) DOL = 1.5 and DFL = 2.0?

Finance problem

(a) Identify and describe two aspects of firms' credit policy. (b) Identify one difference in the credit policies of different firms and explain why this difference may be important to consumers. (c) Can a firm's credit policy hurt it? Explain. (d) Explain why many large firms (e.g., Sears Depa

Find ROE

Last year, Urbana Corp. had $197,500 of assets, $307,500 of sales, $19,575 of net income, and a debt-to-total assets ratio of 37.5%. The new CFO believes a new computer software application will enable it to reduce costs and thus raise net income to $33,000. Assets, sales, and the debt ratio would not be affected. By how much wo

Statement of cash flow

The financial statements of PepsiCo are presented at the company's website, Instructions Refer to PepsiCo's financial statements, and answer the following questions. (a) What was the amount of net cash provided by operating activities for the year ended December 31, 2005? For the year ended Decembe

Statement of Cash Flows

Please see the attachment. The income statement of Elbert Company is presented here. ELBERT COMPANY Income Statement For the Year Ended November 30, 2008 Sales $7,700,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,400,0

Statement of Cash Flows

Please see the attachment. The following account balances relate to the stockholders' equity accounts of Gore Corp. at year-end. 2008 2007 Common stock, 10,500 and 10,000 shares, respectively, for 2008 and 2007 $160,000 $140,000 Preferred stock, 5,000 shares 125,000 125,000 Retained earnings 300,000 260,000 A

Planning for capital investments

The Three Stooges partnership is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Moe Project Larry Project Curly Capital investment $150,000 $160,000 $200,000 Annual net income: Year 1 13,000 18,

Short Run Average Cost Curve

I need the following three questions answered. Please try to associate each scenario with real-world examples. 1. Explain what could cause a shift in the short run Average Cost curve from SAC1 to SAC3. Does this scenario apply to products made by your firm? Figure 1: short run average cost curves 2. Discuss the di

Income Inequality

Briedly discuss the major causes of income inequality. What factors have contributed to greater income inequality since 1970?