If the Income Distribution Is More Unequal Than the Wealth

question 129

Multiple Choice

If the income distribution is more unequal than the wealth distribution,then the

• A) Lorenz curve for income will be farther away from the line of equality than the Lorenz curve for wealth.
• B) government has imposed a higher tax rate on income.
• C) Lorenz curve for wealth will be farther away from the line of equality than the Lorenz curve for income.
• D) Lorenz curve for wealth will lie above the Lorenz curve for income.
• E) It is not possible to draw the Lorenz curve for wealth on the same figure with the Lorenz curve for income.

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Definitions:

Alfred Binet

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A method of assessing the reliability of a test by administering the same test to the same subjects at two different points in time and comparing the scores.

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