Using the Lorenz curve, the degree of income inequality is measured by the:
A. line connecting all points for which a given percentage of families receives exactly that cumulative percentage of income.
B. distance of the Lorenz curve from the line of perfect equality.
C. flat diagonal line that applies to a perfectly elastic demand curve.
D. number of times the Lorenz curve crosses the line of perfect equality.
Answer: B
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Which of the following is true?
i. The advanced economies account for more than half of global production. ii. Almost four out of every five people in the world live in the developing economies. iii. In the advanced economies, agriculture accounts for a larger part of total production than in the developing economies. A) Only i and ii B) Only ii and iii C) Only i and iii D) Only i E) i, ii, and iii
The Solow model is used to explain ________
A) why some economies experience higher rates of growth than others B) the relationship between price and quantity demanded C) the relationship between the rate of inflation and the rate of unemployment D) the notion of opportunity cost
Between 1986 and 2010, the top marginal personal income tax rate was 40 percent or less compared to 70 percent or more prior to 1981 . Compared to the earlier time period, in recent years the share of personal income taxes paid by high income taxpayers
a. has been lower. b. has been virtually unchanged. c. has been higher. d. increased in the late 1980s, but has been falling ever since.
Economic growth causes the PPF to
A) shift leftward. B) shift rightward. C) remain constant. D) go from a straight line to a curve.