Consider the Area Between the Line of Perfect Income Equality

question 51

Multiple Choice

Consider the area between the line of perfect income equality and the Lorenz curve. In country A this area is larger than in country B. It follows that

• A)the bottom 20 percent income group receives a lower percentage of total income in country A than in country B.
• B)the bottom 20 percent income group receives a lower percentage of total income in country B than in county A.
• C)the top 20 percent income group receives a higher percentage of total income in country B than in country A.
• D)the top 20 percent income group receives a higher percentage of total income in country A than in country B.
• E)There is not enough information provided to determine specific relative income comparisons between the two countries.

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Definitions:

Silver

A precious metal with high electrical conductivity, luster, and reflectivity, used in jewelry, currency, and industrial applications.

Coolie Trade

The historical trade of laborers from Asia, particularly China and India, under contracts that were often exploitative, to work in various parts of the world.

Indentured Laborers

Individuals who worked for a specified period in exchange for passage to the New World, often under harsh conditions.

Chinese Laborers

Workers from China, often who were recruited in the 19th and early 20th centuries to perform labor-intensive tasks, notably on the Transcontinental Railroad and in mining operations.