Which of the following correctly describes the Lorenz curve??
A. ?The Lorenz curve shows that the increasing income inequality in the U.S. society is actually good for the economy.
B. The Lorenz curve shows the growth rate in real median family income over time.
C. ?The Lorenz curve shows the cumulative distribution of family income, ranked from the poorest to the richest families, and compares that curve with the straight line indicating perfectly equal income distribution.
D. ?The Lorenz curve shows the cumulative distribution of family income, ranked from the richest to the poorest families, and compares that curve with the ideal of having all income go to the richest 5 percent of society.
Answer: C
You might also like to view...
Refer to Table 2-10. What is Fred's opportunity cost of making a unicycle?
A) 1/3 of a pogo stick B) 1/2 of a unicycle C) 3 pogo sticks D) 1.3 pogo sticks
If a consumer is maximizing utility and then the price of Good A increases: a. the marginal utility from the consumption of Good A will fall
b. the marginal utility from the consumption of Good A will remain unchanged. c. the marginal utility per dollar spent on Good A will decrease. d. consumption of Good A will increase.
When your broker sees that you are in danger of running through your money and forces you to sell your stock and use the money to pay back your loan, he is making a:
A. margin call. B. leverage call. C. stock sales call. D. futures call.
On a bowed production possibilities frontier, as you move down along the curve
a. more of one good must be given up to receive one unit of the other good. b. the available production technology does not change. c. the opportunity cost increases. d. All of the above are correct.