The Lorenz Curve

question 4

Multiple Choice

The Lorenz curve

• A) explains why some households have different incomes.
• B) explains why income is equally distributed.
• C) graphically shows the degree of income inequality.
• D) graphically shows the amount of wealth in a country.

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Definitions:

External Attribution

The process of attributing the cause of a person's behavior to situational factors outside the person.

Self-Serving Bias

The tendency to attribute one’s successes to personal factors and one’s failures to situational factors.

Fundamental Bias

An inherent inclination or prejudice that consistently affects judgement or decision-making.

Interpersonal Factors

Elements pertaining to relationships or interactions between individuals that can influence behavior, emotions, and personal development.