>> International Economics
Assume you have the following income distribution data for the residents of Disneyland: Pluto $15,000 Donald Duck $20,000 Ticket Taker $5,000 Minnie Mouse $25,000 Mickey Mouse $35,000
1. The percentage of Disneyland income held by the lowest quintile is 15%. True or false, and why?
2. Assume that a perfectly equal distribution of income exists in Disneyland. Which of the current residents would have the same income as in the present distribution?
3. Now assume that Mickey Mouse becomes a meanspirited authoritarian dictator. His income is $99,996. Each of the other characters receives $1. Describe what this income distribution would look like on a Lorenz curve.
4. What is the U.S. Government's definition of poverty?
5. List and briefly explain two advantages and two disadvantages of a more equal distribution of income.