Economics HL
Economics HL
4
Chapters
117
Notes
Unit 1 - Intro To Econ & Core Concepts
Unit 1 - Intro To Econ & Core Concepts
Unit 2 - Microeconomics
Unit 2 - Microeconomics
Unit 3 - Macroeconomics
Unit 3 - Macroeconomics
Unlocking National Income Stats: What They Reveal About Economies
GNI vs. GDP: Which Better Measures Economic Well-Being?
Understanding Aggregate Demand Beyond GDP
Understanding Aggregate Supply Monetarist Vs. Keynesian Views
Understanding Equilibrium Monetarist Vs Keynesian Models Explained
Understanding Macroeconomic Equilibrium: A Deep Dive
Economic Growth Blessing or Curse for Living Standards
Understanding Unemployment Myths, Measurements, and Meaning
Deflation Demystified: Why Lower Prices Aren't Always Better!
Understanding Inflation Insights & Implications For Economies
Understanding Equality Vs. Equity In Income Distribution
Understanding Economic Inequality Income vs. Wealth
Unveiling Income Inequality The Power of Lorenz Curve & Gini Coefficient
Understanding 2018's Lorenz Curve Income Quintile Insights
Understanding Poverty Absolute Vs. Relative Explained
Understanding Poverty Beyond Just Income Measures
Understanding Globalization, Technology, and Income Inequality Impact
Understanding Taxes From Direct To VAT Explained!
Understanding Tax Rates ATR vs MTR Explained
Unlocking Equity: How Taxation Curbs Income Inequalities
Strategies To Combat Poverty Beyond Traditional Taxation
Unraveling Money From Basics To Banking & Policy Mechanics
Understanding The Demand For Money: A Deep Dive
Central Bank's Tools Steering Money Supply & Interest Rates
Impact of Contractionary Monetary Policy on Aggregate Demand
Monetary Policy Key Strengths and Limitations Explained
Mastering Fiscal Policy How Government Spending Influences Economy
Unlocking The Power Of The Keynesian Multiplier
Unveiling Fiscal Policy: Key Advantages & Notable Disadvantages
Unlocking Economic Growth: The Power of Supply-Side Policies
Boosting Growth: The Power of Supply-Side Policies
Unveiling Supply-Side Policies: Market-Based Vs. Interventionist Insights
Unlocking Macroeconomic Objectives: Tools & Tactics for Policymakers
Mastering Price Stability: Fiscal vs. Monetary Policies
Effective Policies To Counter Different Types Of Unemployment
Macroeconomic Dilemma: Unemployment Vs. Inflation
Unit 4 - The Global Economy
Unit 4 - The Global Economy
IB Resources
Unit 3 - Macroeconomics
Economics HL
Economics HL

Unit 3 - Macroeconomics

Unveiling Income Inequality The Power of Lorenz Curve & Gini Coefficient

Word Count Emoji
461 words
Reading Time Emoji
3 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Hey there, future economists! 🎩💼 Ready to dive into the fascinating world of income inequality? Buckle up, because it's a roller coaster of highs and lows – literally! Let's break down this rich topic into something a bit more digestible (and tasty). 🎢🍽

The lorenz curve- a graphical insight! 📈

The Lorenz curve helps us visualize how income is distributed within a country. Imagine it as a big pie, where you want to find out how the pie is divided among all the people in a room. Yum!

  • Horizontal Axis: Here we list people from the lowest to highest earners, represented in cumulative percentages. So, the poorest are on the left, the richest on the right.
  • Vertical Axis: This tells us the percentage of the national income that a specific group earns. For instance, the poorest 20% might earn just 7% of the pie!
  • Diagonal Line: Think of this as a perfectly sliced pie, where everyone gets an equal piece. If the 20% poorest people have 20% of the pie, that's perfect equality.

If the curve moves closer to this diagonal line, we have more equality. If it drifts away, inequality grows. 📉📈

 

Real-World Example: Compare Sweden's Lorenz curve to South Africa's. Sweden would have a curve closer to the diagonal, indicating fairer distribution, while South Africa's would veer away, showing a wider gap between rich and poor.

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IB Resources
Unit 3 - Macroeconomics
Economics HL
Economics HL

Unit 3 - Macroeconomics

Unveiling Income Inequality The Power of Lorenz Curve & Gini Coefficient

Word Count Emoji
461 words
Reading Time Emoji
3 mins read
Updated at Emoji
Last edited on 5th Nov 2024

Table of content

Hey there, future economists! 🎩💼 Ready to dive into the fascinating world of income inequality? Buckle up, because it's a roller coaster of highs and lows – literally! Let's break down this rich topic into something a bit more digestible (and tasty). 🎢🍽

The lorenz curve- a graphical insight! 📈

The Lorenz curve helps us visualize how income is distributed within a country. Imagine it as a big pie, where you want to find out how the pie is divided among all the people in a room. Yum!

  • Horizontal Axis: Here we list people from the lowest to highest earners, represented in cumulative percentages. So, the poorest are on the left, the richest on the right.
  • Vertical Axis: This tells us the percentage of the national income that a specific group earns. For instance, the poorest 20% might earn just 7% of the pie!
  • Diagonal Line: Think of this as a perfectly sliced pie, where everyone gets an equal piece. If the 20% poorest people have 20% of the pie, that's perfect equality.

If the curve moves closer to this diagonal line, we have more equality. If it drifts away, inequality grows. 📉📈

 

Real-World Example: Compare Sweden's Lorenz curve to South Africa's. Sweden would have a curve closer to the diagonal, indicating fairer distribution, while South Africa's would veer away, showing a wider gap between rich and poor.

Unlock the Full Content! File Is Locked Emoji

Dive deeper and gain exclusive access to premium files of Economics HL. Subscribe now and get closer to that 45 🌟

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