If a Nation's Lorenz Curve Lies on the 45-Degree Line

question 1

Multiple Choice

If a nation's Lorenz curve lies on the 45-degree line of income equality:

• A) proportionately more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent.
• B) income is unequally distributed.
• C) proportionately more of the nation's income is received by the highest 20 percent of families than by the lowest 20 percent.
• D) the income received by each 20 percent of families is 20 percent of the total income.

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