Exhibit 18-1 Exhibit 18-1 Shows Five Different Lorenz Curves

question 23

Multiple Choice

Exhibit 18-1 Exhibit 18-1 shows five different Lorenz curves.Along the Lorenz curve labelled a, the poorest 60% of the population earns what proportion of the total income?

• A)20%
• B)40%
• C)60%
• D)80%
• E)100%

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Definitions:

Spinout

A situation where a vehicle loses traction, causing it to rotate uncontrollably.

Power Divider

A mechanical device in vehicles, particularly in heavy-duty trucks, that splits the driving force between the front and rear axles to improve traction.

Interaxle Differential

A mechanism that allows for differential speeds between the front and rear axles of a multi-axle vehicle, improving maneuverability and traction.

Controlled Traction

Differential gearing that uses a friction plate assembly to transfer drive torque from a slipping wheel (sensed by axle shaft spinout) to its opposite.