If There Were No Income Inequality in a Nation, Its

question 30

Multiple Choice

If there were no income inequality in a nation, its Lorenz curve would be:

• A) convex.
• B) concave.
• C) an upward-sloping straight line with slope of 1.
• D) a horizontal line.

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Definitions:

Fixed Costs

Fixed costs, which are unaffected by the volume of production or sales, encompassing charges like lease payments, employee salaries, and insurance fees.

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial loss.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Labor

Human effort, whether physical or mental, contributed to the production of goods and services.