Suppose 20 percent of the families receive 20 percent of the income, 40 percent of the families receive 40 percent of the income, and so forth. The Lorenz curve would be
A. the most bowed curve possible.
B. the horizontal axis.
C. a straight line at a 30-degree angle from the origin.
D. a straight line at a 45-degree angle from the origin.
Answer: D
You might also like to view...
If the value of the marginal product of physical capital is $20 and the value of the marginal product of labor is $5, the highest price that a firm should pay for an additional unit of physical capital is:
A) $4. B) $5. C) $20. D) $100.
What is the difference between a sterilized and non-sterilized central bank intervention in the foreign exchange market?
What will be an ideal response?
What percentage of bank assets were in loans in 2012?
A) 8% B) 20% C) 37% D) 60%
In order to shift the current production possibilities curve outward, an economy
A. Must use more of the existing resources. B. Will never be able to produce a combination of goods and services outside the current production possibilities curve. C. Can raise the prices of goods and services to encourage firms to produce more. D. Must find additional resources or better technology.