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:

Costs And Benefits

Costs and benefits are considerations in decision-making processes, evaluating the negative (costs) and positive (benefits) outcomes of actions or investments.

Happiness

A condition characterized by happiness and satisfaction, marked by feelings that vary from being content to experiencing profound happiness.

Cash

A physical form of money, such as coins and banknotes, which is used in transactions to purchase goods and services.

Spend

To use money to pay for goods or services, or more broadly, to use resources or time for a particular purpose.