Which of the following statements regarding the Lorenz curve is FALSE?
A. The less bowed is a Lorenz curve, the less equally income is distributed.
B. A Lorenz curve that is perfectly straight represents complete income equality.
C. The more bowed is a Lorenz curve, the more unequally income is distributed.
D. A Lorenz curve is a geometric representation of the distribution of income.
Answer: A
You might also like to view...
The Hatfields and the McCoys both earn $50,000 per year in real terms in the labor market, and both families are able to earn a 5% real interest rate on their savings. In the year 2010, both families began to save. The Hatfields saved 8% of their income each year; the McCoys saved 10%. In 2010, the Hatfields consumed ________ more than the McCoys; in 2011, the Hatfields consumed ________ than the McCoys.
A. $1,000; about $960 less B. $1,000; about $960 more C. $2,000; about $960 more D. $2,000; about $960 less
Generally with bond ratings, the ________ the rating, the lower the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) higher; higher B) higher; lower C) lower; lower D) lower; higher
When the Federal Reserve sells a government security to a bond dealer, which transmits payment from a transactions deposit account at a bank
A) the cash of the Federal Reserve will decrease. B) the net worth of the commercial bank will decrease. C) the loans of the commercial bank will increase. D) the money supply will decrease.
In the classical model, we include unintended inventory changes
a. True b. False