a. Describe any 3 measures of Inequality. For each measure, explain whether it satisfies the axioms of 1) Anonymity, 2) Population invariance, 3) Relative income principle, 4) Dalton principle
b. Using the Galor-Zeira model, describe how initial inequality in a society may get exacerbated over time. What impact does the initial level of inequality have on the long run per capita income of a country? How does this relationship differ between rich and poor countries?
c.What is the Kuznets curve hypothesis of inequality? Discuss the possible channels through which the hypothesis might hold. What are some of the limitations of the Kuznets hypothesis?