What Does a Lorenz Curve Illustrate

question 93

Multiple Choice

What does a Lorenz curve illustrate?

• A)a comparison of the distribution of income in two different countries
• B)the distribution of income within a country in a given time period
• C)the share of taxes paid by different groups of households
• D)the change over time in the percentage of households with incomes that place them below the poverty line

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Definitions:

Market Products

Goods, services, or securities offered for sale or trade in a particular market segment.

Hedge

An investment made to reduce the risk of adverse price movements in an asset, typically by taking an offsetting position in a related security.

Japanese Yen

The official currency of Japan, commonly used in international financial transactions.

U.S. Dollar

The official currency of the United States, widely used as a benchmark and reserve currency around the world.