Figure 15-1 As Shown in Figure 15-1, the Degree of Unequal Income

question 108

Multiple Choice

Figure 15-1
As shown in Figure 15-1, the degree of unequal income distribution is measured by the area between the

• A) Lorenz curve and the horizontal axis.
• B) Lorenz curve and the vertical axis.
• C) Perfect equality line and the origin.
• D) Perfect equality line and the Lorenz curve.

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Definitions:

Factor Endowments

Refers to the quantities of productive resources a country has available, including labor, land, and capital.

Trade Advantage

The benefit or edge a country, region, or business has in producing a specific good or service more efficiently than competitors.

Labor-Abundant

Describes an economy or sector that has a high availability of labor relative to capital.

Land-Abundant

A description of a country or region that has a large amount of land available for agriculture or development relative to other inputs.