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:

Social Loafing

The occurrence in which people put in less effort towards reaching a goal when part of a group than they do when working individually.

Ringelmann Effect

The Ringelmann Effect describes the phenomenon where individuals in a group become less productive as the size of the group increases.

Social Loafing

The behavior of individuals demonstrating decreased effort in goal achievement while in a group setting versus when working independently.

Ringelmann Effect

Describes the tendency for individual members of a group to become increasingly less productive as the size of the group increases.