2.2 lorenz curve (class 2)

• Economie
• Middelbare school
• havo
• Leerjaar 3

Hi there!

Income distribution

Program

1. Recap previous class + homework

2. Explanation

3. Assignments 

Lesson goals

At the end of the class you are:

- able to explain what you can do with a Lorenz curve

- able to draw a Lorenz curve

- able to explain what prosperity means

- Explain what GDP and growth rates standr 

Impact for the Dutch Lorenz curve...

Lorenz curve

A lorenz curve shows how big the income differences are between households

Lorenzcurve

Cumulatief  % inkomen

Cumulatief % huishouden

 

Horizontal axe shows the cummulative percentage of households 

Vertical axe  shows the cumulative percentage of incomes

Lorenzcurve starts always with (0,0) because 0% of the population makes 0% of the income

Lorenzcurve

Drawing with a table

Cummulative: adding up group percentages. You add up the percentages from low to high  

Stappenplan tekenen Lorenzcurve

stap 1

Verdeel de inkomens in gelijke groepen (Op de toets wordt dit voor je gedaan).

stap 2

Je berekent hoeveel % elke groep van het totaal aantal groepen bestaat. Je berekent ook hoeveel % het inkomen per groep van het totale inkomen bedraagd. Dit doe je met de formule: deel/geheel*100%

Stap 3

Je cumuleert de percentages van de groepen en het inkomen. Je telt dus de percentages van laag naar hoog in stapjes bij elkaar op. 

Stap 4

Teken de Lorenzcurve met behulp van de cumulatieve percentages. (assenverdeling horizontaal en verticaal 1cm = 10%)

Lorenzcurve

Assignments

Discuss 2.10  + 2.11

Is the level of your income important?

How much does Harry Styles earn per month?

Is the level of your income important?

Everybody wants to reach the highest possible prosperity

Prosperity = degree to which people can meet their needs

The GDP (Gross Domestic Product) is used since the 1930s to meet the change in prosperity

Is the level of your income important?

GDP = value of total production of a country 

Economists assume prosperity increases when the per capita GDP increases

ourworldindata.org

Is the level of your income important?

When looking at GDP it is important to look at the changes as well compared to the previous year

Growth rates = % change compared to previous year

Is the level of your income important?

Which important this are not included in the GDP (when looking at how "well" a country is doing?)

Is the level of your income important?

Which important this are not included in the GDP (when looking at how "well" a country is doing?)

Topics not included: environment, health, happiness, income differences, etc.. 

Is the level of your income important?

The Human Developement Index (HDI) has been introduced..

GDP, but as well looked at the level of education and life expectancy in a country

Is the level of your income important?

What does prosperity stand for?

What do we measure with the GDP?

What do we measure with the HDI?

Assignments

2.12 tm 2.15

Done? Make the test of the wildlife fund of 2.16

Lesson goals

At the end of the class you are:

- able to explain what you can do with a Lorenz curve

- able to draw a Lorenz curve

- able to explain what prosperity means

- Explain what GDP and growth rates standr