The Lorenz Curve Shows the

question 102

Multiple Choice

The Lorenz curve shows the

• A)functional distribution of income
• B)personal distribution of income
• C)relative percentage of income going to each of the resources
• D)demand for unskilled versus unskilled labor
• E)cumulative percentage of income received by cumulative percentages of households

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Definitions:

Marginal Product

The rise in production resulting from the use of one more unit of input.

Value of the Marginal Product

The extra income produced from the use of an additional unit of input, like capital or labor.

Marginal Product (MP)

The extra output generated from increasing the quantity of a particular input by one, while keeping other inputs unchanged.

Price (P)

The cost necessary to acquire a good or service.