Which of the Following Correctly Describes the Lorenz Curve? ​

question 44

Multiple Choice

Which of the following correctly describes the Lorenz curve? ​

• A) ​The Lorenz curve shows that the increasing income inequality in the U.S. society is actually good for the economy.
• B)  The Lorenz curve shows the growth rate in real median family income over time.
• C) ​The Lorenz curve shows the cumulative distribution of family income, ranked from the poorest to the richest families, and compares that curve with the straight line indicating perfectly equal income distribution.
• D) ​The Lorenz curve shows the cumulative distribution of family income, ranked from the richest to the poorest families, and compares that curve with the ideal of having all income go to the richest 5 percent of society.

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Definitions:

Passionate Love

An intense emotional state characterized by strong feelings of attraction, attachment, and desire for another person, often accompanied by physiological arousal.

Attached Love

A form of affection and emotional bond that typically refers to the strong emotional connections developed between people in intimate relationships.

Defensive Attribution

Defensive attribution is a psychological process in which individuals attribute causes for events in a way that defends their self-esteem or minimizes their feelings of vulnerability.

Self-Serving Bias

A common tendency for individuals to attribute their successes to personal characteristics and their failures to external factors.