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7. Table 15.9 shows the share of income going to each quintile of the income distribution for the United

Kingdom in 1979 and 1991. Use this data to calculate what the points on a Lorenz curve would be, and

sketch the Lorenz curve. How did inequality in the United Kingdom shift over this time period? How can

you see the patterns in the quintiles in the Lorenz curves?

15 • Review Questions 383

Share of Income

1979

1991

Top quintile

39.7% 42.9%

Fourth quintile

24.8% 22.7%

Middle quintile

17.0% 16.3%

Second quintile

11.5% 11.5%

Bottom quintile

7.0% 6.6%

TABLE 15.9 Income Distribution in

the United Kingdom, 1979 and 1991

8. Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage

labor market, explain how information technology can increase income inequality if it is a complement to

high-income workers like salespeople and managers, but a substitute for low-income workers like file
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