All of the following are criticisms of the Lorenz curve analysis EXCEPT
A) income-in-kind is not figured in.
B) the inequality gap is not an issue that economists study.
C) different sizes of households are ignored.
D) it does not take into consideration lifetime earnings.
Answer: B
You might also like to view...
How does the progressive income tax help reduce the inequality of income in the United States?
What will be an ideal response?
If the economy is in a recession, the Fed is likely to:
A. buy bonds through open market operations. B. increase the discount rate. C. increase the reserve requirement. D. print more currency.
If the economy is in the vertical portion of the AS curve, what will be the effect on an increase in the price level on the level of employment?
A. There will be substantial increase in employment B. There will be a less than proportional increase in employment C. There will be no change in employment D. Cannot be predicted from the information given
When we draw an investment demand curve, we hold constant all of the following except:
A. the expected rate of return on the investment. B. business taxes. C. the interest rate. D. the present stock of capital goods.