4. Refer to the table of Gini coefficients in the Added Dimension box entitled \"The Gini Coefficient\" in your textbook to answer the following questions: Is income generally more or less equally distributed in the United States compared to income distribution in other countries? a. b. Look also at Figure 18-4 in your text. In terms of per capita income, how does the United States compare to other countries? c. What is more important, the distribution of income or the level of income? Solution a) Income is less equally distributed in US as compared to other countries, which has increased significantly since the 1970s after several decades of stability. In other words, there has been an increase in the share of nation\'s income received by higher income households. The U.S. ranks behind than 70% of countries who have a more equal income distribution than the US. b) Compared to the other nations per capita income of US is much better than majority of the other countries (more than its peers or more than other advanced countries), it is more than Germany, France, United Kingdom, and Italy. US (per capita PPP) is ranked at 9th position according to world bank and US (per capita nominal) ranked at 7th position. c) The distribution of income is of enormous importance than the income level. As it influences the structure of the society while determining the poverty level of it for any given level of GDP. And also because of the fact that income distribution among the population provides a method of measurement employed in the determination of the dispersion of incomes..

1. 4. Refer to the table of Gini coefficients in the Added Dimension box entitled "The Gini
Coefficient" in your textbook to answer the following questions: Is income generally more or
less equally distributed in the United States compared to income distribution in other countries?
a. b. Look also at Figure 18-4 in your text. In terms of per capita income, how does the United
States compare to other countries? c. What is more important, the distribution of income or the
level of income?
Solution
a) Income is less equally distributed in US as compared to other countries, which has increased
significantly since the 1970s after several decades of stability. In other words, there has been an
increase in the share of nation's income received by higher income households. The U.S. ranks
behind than 70% of countries who have a more equal income distribution than the US.
b) Compared to the other nations per capita income of US is much better than majority of the
other countries (more than its peers or more than other advanced countries), it is more than
Germany, France, United Kingdom, and Italy. US (per capita PPP) is ranked at 9th position
according to world bank and US (per capita nominal) ranked at 7th position.
c) The distribution of income is of enormous importance than the income level. As it influences
the structure of the society while determining the poverty level of it for any given level of GDP.
And also because of the fact that income distribution among the population provides a method of
measurement employed in the determination of the dispersion of incomes.