As Income Becomes More Unequally Distributed, the Lorenz Curve ________

question 118

Multiple Choice

As income becomes more unequally distributed, the Lorenz curve ________ and ________.

• A) moves further down to the right; the shaded area increases
• B) moves further up to the left; the shaded area decreases
• C) moves further up to the left, rising above the 45 degree line; the shaded area increases
• D) moves further down to the right; the shaded area decreases

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Definitions:

Capitalism

An economic system characterized by private ownership of the means of production, the operation for profit, and market competition.

Protestant Work Ethic

A concept emphasizing hard work, discipline, and frugality as a result of one's faith, historically linked to Protestantism and seen as a factor in the economic success of individuals and societies.

Nonmaterial Culture

Aspects of culture that are not physical, including beliefs, values, norms, and languages.

Ideas

Mental concepts or thoughts that can be based on observations, experiences, or theoretical insights.