The Lorenz curve in the above figure implies that
A) income is equally distributed.
B) the lowest fifth of households account for less than 20 percent of income.
C) the highest fifth of households account for less than 20 percent of income.
D) the lowest fifth of households account for more than 20 percent of income.
B
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How does the aggregate demand curve differ from a demand curve for, say, bananas?
What will be an ideal response?
The short-run aggregate supply curve is upward-sloping because: a. the quantity of real output supplied is inversely related to aggregate supply
b. nominal incomes are fixed. c. of the conjunction between the incremental capital-output ratio and the interbank offer rate. d. an increase in price will increase the supply of money.
The decrease in consumer spending that occurred after the collapse of the housing bubble caused aggregate:
A. demand to increase. B. demand to decrease. C. supply to increase. D. supply to decrease.
If the GDP deflator in 2009 was 120 compared to a value of 100 during the 2004 base year, this would indicate that
a. the inflation rate during 2009 was 20 percent. b. the general level of prices during 2009 was 20 percent higher than during 2004. c. the inflation rate during 2009 was 120 percent. d. real GDP was 20 percent higher in 2009 than 2004.