-The Above Figure Shows Two Lorenz Curves

question 21

Multiple Choice

-The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is

• A) distributed more equally along Lorenz curve B.
• B) greater along Lorenz curve B.
• C) distributed more equally along Lorenz curve A.
• D) greater along Lorenz curve A.

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Definitions:

Finance Charge

Fees and interest charges associated with the borrowing of money or the extension of credit.

Installments

Periodic payments made towards settling a debt or purchasing a good, spreading out the total cost over a period of time.

Fair Credit Reporting Act

A federal law that regulates the collection, dissemination, and use of consumer credit information to ensure accuracy and privacy.

Fair Debt Collection Practices Act

A US federal law aimed at preventing abusive, deceptive, and unfair practices by debt collectors when collecting debts.