If the Lorenz Curve for Income Moves Upward Toward the 45°

question 141

Multiple Choice

If the Lorenz curve for income moves upward toward the 45° line,then the

• A) distribution of income has become more unequal.
• B) distribution of income has become more equal.
• C) mean (average) household income increased.
• D) total household income increased.
• E) total household income decreased.

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Definitions:

Quantity Supplied

The amount of a particular good or service that suppliers are willing and able to provide at a given price during a certain period.

Demand Function

A mathematical expression showing the relationship between the quantity demanded of a good and its price, holding other factors constant.

Supply Function

A numerical model illustrating how the amount of a product provided is related to its cost.

Subsidy

A subsidy is a financial contribution provided by the government or a public body to support businesses, consumers, or sectors, reducing the price of goods or services.