Exhibit 12-3 Lorenz Curve for an Economy

question 47

Multiple Choice

Exhibit 12-3 Lorenz curve for an economy

If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:

• A) move closer to the 45 ° line.
• B) become more bowed outward.
• C) lie above the 45 ° line.
• D) shift down and to the right.

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Definitions:

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using information, such as perception, memory, and reasoning.

Learning

The process through which experience or practice results in a relatively permanent change in behavior or potential behavior.

Memory

The cognitive function that allows an individual to store, retain, and recall information from past experiences.

Autonomic Nervous System

The part of the nervous system that controls involuntary bodily functions, including heart rate, digestion, and respiratory rate, comprised of sympathetic and parasympathetic divisions.