If the Lorenz Curve for Income Moves Upward Toward the 45°

question 3

Multiple Choice

If the Lorenz curve for income moves upward toward the 45° line, then the

• A) total household income decreased.
• B) total household income increased.
• C) mean (average) household income increased.
• D) distribution of income has become more unequal.
• E) distribution of income has become more equal.

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Definitions:

Service Sector

A segment of the economy that involves providing services, as opposed to producing goods, including sectors like retail, healthcare, and education.

Manufacturing Sector

The sector of the economy that is engaged in the production of goods through the processing of raw materials and components into finished products.

Mass Customization

A strategy that enables businesses to produce goods and services to meet individual customer's needs with near mass production efficiency.

Critical Decisions

Vital choices or judgments that significantly impact an organization or individual's course of action and potential success.