As a Tool That Is Used to Measure Inequality in the Distribution

question 159

Multiple Choice

As a tool that is used to measure inequality in the distribution of income,the Lorenz curve graphs

• A) the cumulative percentage of money income against the cumulative percentage of households.
• B) the percentage of total money income received by each given percentage of households.
• C) the mean income, median income, and mode income against the percentage of households.
• D) the mean money income received by households over time.
• E) the cumulative percentage of money income against the mean and median money income.

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Definitions:

Intuitions

Intuitions are immediate understandings, knowledge, or beliefs that come without the need for conscious reasoning.

Explicit Conscious

Direct, clear awareness of mental activities, such as thinking, feeling, and decision-making.

Effortless

Achieved with remarkable ease and without apparent difficulty or exertion.

Representativeness Heuristic

A mental shortcut that involves making judgments about the probability of an event under uncertainty, based on how much it resembles the typical case.