Looking at the Lorenz Curves for Income Distribution in All

question 63

Multiple Choice

Looking at the Lorenz curves for income distribution in all the world's nations,we would find that

• A) some nations have Lorenz curves that lie above the 45° line, other nations have Lorenz curves that lie below the 45° line, but no nation has a Lorenz curve that lie on the 45° line.
• B) all nations have Lorenz curves that lie above the 45° line.
• C) all nations have Lorenz curves that lie below the 45° line.
• D) some nations have Lorenz curves that lie above the 45° line, other nations have Lorenz curves that lie below the 45° line, and still other nations have a Lorenz curve that lies on the 45° line.
• E) None of the above answers is correct.

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Definitions:

Lose-Lose Strategy

A conflict resolution outcome in which all parties end up being worse off than before they started negotiating.

Arbitration

A form of dispute resolution where a neutral third party (the arbitrator) makes a decision to resolve a dispute, typically binding on the parties.

Compromise

The act of finding a middle ground between conflicting needs, desires, or demands.

Compromising Style

A conflict resolution approach where each party gives up something to reach a mutually acceptable solution.