To Draw a Lorenz Curve Showing the Distribution of Income

question 12

Multiple Choice

To draw a Lorenz curve showing the distribution of income by household,one should first rank all households according to:

• A) household size.
• B) age of head of household.
• C) wage level.
• D) income or consumption level.

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Definitions:

High Barriers to Entry

Conditions that make it difficult for new competitors to enter a market, including high costs, strict regulations, or established brands.

Low Power of Suppliers

A business situation where suppliers have little control over the pricing and terms of products being supplied, enhancing the bargaining power of the purchasing company.

Hypercompetition

An extremely competitive business environment characterized by rapid and constant changes in technology, customer preferences, and market dynamics.

Attractive Industry

A sector of the economy that offers significant opportunities for investment, growth, and profitability, making it appealing to businesses and investors.