Use the Figure Below to Answer the Following Questions

question 132

Multiple Choice

Use the figure below to answer the following questions.

Figure 2.1.3
-Refer to the production possibilities frontier in Figure 2.1.3. The fact that less of X must be given up when moving from D to C than when moving from B to A indicates

• A)decreasing opportunity cost.
• B)increasing opportunity cost.
• C)comparative advantage in the production of X.
• D)the consequences of technological improvement.
• E)unemployed resources at D.

---

Definitions:

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, indicating levels of inequality.

X-axis

The horizontal line on a graph that represents the independent variable.

Vertical

An orientation or direction that goes straight up and down, perpendicular to the horizon.

Gini Coefficient

A gauge for comparing income distribution within a group, starting at 0 for utter equity and peaking at 1 for maximal inequity.