2.2 lorenz curve (class 3)

• Economie
• Middelbare school
• havo
• Leerjaar 3

Hi there!

Program

1. Recap previous class + homework

2. Short explanation + assignment

3. Prepare for the test (next week)

Which important factors are not included when calculating the GDP of a country?

Lesson goals

At the end of the class you are:

- able to explain what prosperity means

- Explain what GDP and growth rates stand for

- Know what to do to prepare for the test

Test

Final class before the test of chapter 2

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

Assignments

Discuss assignments 2.10 tm 2.15 

Building block chapter 2

Income distribution in a nursery  (p. 31)

Income for a nursery come from different categories (wages, rent, profit, etc.)

Building block chapter 2

If we express a quantity as a percentage of the (national) income --> the outcome is called a ratio

Wage expressed as a percentage of the total primary income of the nursery is called the wage ratio

Building block chapter 2

Wage ratio = wage : total income x 100%

Assignments

complete assignment 1 from the building block (p. 31 + 32)

Done? Start preparing for the test

What do you need to know for the test?

- Understand and calculate with primary, transfer and national incomes

- Understand and exlain what is meant with GDP and the HDI (Human Development Index)

- Understand and exlain what is meant with the factors of production and link these to the right incomes

- Understand and exlain what is meant with income distribution

- Be able to draw a Lorenz curve and explain what is shown with this figure

- Understand and exlain what is meant with prosperity

- Understand and exlain what is meant with growth rates

- Calculate with big numbers

How to prepare for the test

Learn the theory from the book

Redo/check difficult assignments

Complete the building block assignments 

Difficult topics? --> search for an explanation video on youtube

Test is a combination of theory and calculations

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