@vandita24x7 and maahi: For dabraj ray formula look for page no.188 to190....in below link...If found any problem then you can ask me.

http://books.google.co.in/books?id=GKr5RxWT4uAC&printsec=frontcover#v=onepage&q&f=false@vandita24x7: Answer of your question is b)G5<G1=G2=G3=G6<G4

where G1=G2=G3=G6=0.25, G5=0, G4>0.25( not calculated it bcoz It must be greater than all .....can be seen by examine the yellow type people income which is increasing, so the inequality must also increase).

Note: Guys don't get confuse,,,

, If you will consider both the formulas you'll definitely get confused like I did when I get to know both the formulas..

I found simple solution for this,

1)consider only debraj ray formula bcoz it applied to all the problem I faced till now n got all the answers correct.

2)Including Debraj ray formula understand lorenz curve utterly bcoz gini coefficient is nothing but the ratio of the area btw 45 degree line and lorenz curve to the area of triangle below 45 degree line.

Also I get to know two things while doing questions which will help you to solve gini coefficient question using debraj ray formula.

1)If the different income of all the income group is multiplied by a same +ive real number then the gini coefficient will remain same.

2)If the no. of people in each income group is multiplied by a same +ive integer then again gini coefficient remain same.

You can verify above two results by using Lorenz curve........you can also verify the above results from the question given by vandita24x7 above...plz let me know if you found any difficulty...

M.A Economics

Delhi School of Economics

2013-15

Email Id:sumit.sharmagi@gmail.com