Figure 332 Illustrates Lorenz Curves for Four Different Economies

question 60

Multiple Choice

Figure 33.2 illustrates Lorenz curves for four different economies. For which economy would lower-income families receive the largest share of total income?

• A)A.
• B)B.
• C)C.
• D)D.

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, typically measured by GDP.

Full Potential

The maximum capability or level of achievement an individual, organization, or system can reach based on its inherent qualities and resources.

Savings Rate

is the proportion of disposable income that is saved rather than spent by individuals or households.

Productive Investment Projects

Initiatives undertaken by businesses or individuals that are expected to yield a return by increasing output or efficiency.