In a Lorenz Curve Diagram, the Size of the Area

question 41

Multiple Choice

In a Lorenz curve diagram, the size of the area between the Lorenz curve and the diagonal line represents

• A) complete income equality.
• B) the percentage of income received by the top 5 percent of families.
• C) the percentage of income received by the bottom 20 percent of families.
• D) the dollar incomes of the bottom 40 percent of families.
• E) the degree of inequality in the distribution of income.

---

Definitions:

Ideal Types

A concept developed by Max Weber, referring to an analytical framework that defines the purest version of a social phenomenon, without the influence of external factors.

Max Weber

A German sociologist, philosopher, and political economist known for his theories on the rationalization of society and his analysis of the structure of authority.

Theorist

An individual who formulates theories or hypotheses in a specific field of study, making contributions to academic and practical knowledge.

Business Sponsorship

A form of marketing strategy where a business supports an event, activity, person, or organization financially or through the provision of products or services.