The following income distribution data are for Brazil. Data collected from the World Development Indicators.
Quintile
Percent Share of national income
First decile (Lowest 10%)
1.2%
First quintile (Lowest 20%)
3.0%
Second quintile
6.9%
Third quintile
11.8%
Fourth quintile
19.6%
Fifth quintile (Highest 20%)
58.7%
Top decile (Highest 10%)
43.0%
(a) Carefully graph the Lorenz curve in Excel, label the axes. Submit the Excel file as well as handwritten answers on other answer sheets.
(b) Brazil’s national income is about $300 billion. What is the dollar income of the poorest 20% of population or the first quintile? First decile (or Lowest 10%)? Second quintile?
(c) (Continue from b) Assume that Brazil’s population is approximately 150 million, so that each quintile has 30 million people and each decile has 15 million people. What is the average personal income for the lowest 10% of population or first decile? Lowest 20%? Second quintile?
(d) (Continue from c) If the national poverty line is $400 per person, what is the poverty headcount ratio? What is the total poverty gap in $?