-The Lorenz Curve in the Above Figure Implies That

question 84

Multiple Choice

-The Lorenz curve in the above figure implies that

• A) income is equally distributed.
• B) the lowest fifth of households account for less than 20 percent of income.
• C) the highest fifth of households account for less than 20 percent of income.
• D) the lowest fifth of households account for more than 20 percent of income.

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Definitions:

Production Method

A production method is a process or technique used to create goods or services, often varying based on the type of product, industry standards, and efficiency.

Total Product Curve

A graphical representation showing the total quantity of output produced by a firm in relation to varying levels of a single input, holding all other inputs constant.

Total Utility

The total satisfaction or benefit that a person receives from consuming a particular quantity of goods or services.

Marginal Utility

The additional satisfaction or utility obtained by consuming one more unit of a good or service.