The Graph Shown Displays a Lorenz Curve

question 21

Multiple Choice

The graph shown displays a Lorenz curve. Which of the following statements is true?

• A)Curve B demonstrates a more equal society than curve A.
• B)The top 10 percent of earners in the society represented by curve B earn a higher percentage of total income than the top 10 percent of earners in the society represented by curve A.
• C)Curve B represents a more desirable society.
• D)Individuals in the society represented by curve B must work longer hours than individuals in the society represented in curve A in order to reach the same income.

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Definitions:

Intelligence

An individual’s ability to understand complex ideas, to adapt effectively to the environment, to learn from experience, to engage in various forms of reasoning, and to overcome obstacles through mental effort.

Pleasing Disposition

A temperament or personality that is generally agreeable and pleasant to interact with.

Dependable Character

A quality of being reliable and trustworthy, showing consistency in actions and behavior over time.

Socially Outgoing

Characteristic of a person who is open, friendly, and inclined towards social interaction.