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:

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The condition of a nation, country, or state which exercises self-government, and sovereignty, free from external control.

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