Figure 18-6 Figure 18-6 Shows the Lorenz Curves for Islandia and Syldavia

question 2

Multiple Choice

Figure 18-6

Figure 18-6 shows the Lorenz curves for Islandia and Syldavia.
-Refer to Figure 18-6.Which country has the more unequal distribution of income?

• A)Islandia
• B)Syldavia
• C)They may have the same absolute income distribution although their relative income distribution is different.
• D)There is insufficient information to answer the question.

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Definitions:

Substitute Goods

Products or services that can be used in place of each other, where an increase in the price of one leads to an increase in demand for the other.

Income

The financial gain earned or received over a period of time, typically through employment, investments, or business operations.

Flow Measure

A term used in economics to describe a quantity measured over a specified period of time, such as income per month or spending per year.

Quantity Demanded

The total number of units of a product or service that purchasers are eager and capable of procuring at a designated price level.