-In the Above Figure, If the Lorenz Curve Were to Move

question 345

Multiple Choice

-In the above figure, if the Lorenz curve were to move closer to the diagonal line containing points b and c, the income distribution would be

• A) more unequal.
• B) more equal.
• C) unchanged.
• D) More information is needed to determine how this change would affect the income distribution.

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Definitions:

Limestone

Limestone is a sedimentary rock composed mainly of calcium carbonate, used in the construction industry and for producing lime, cement, and other materials.

Ambrosia

In mythology, the food or drink of the gods, often depicted as conferring immortality; in the modern context, it can refer to something extremely pleasing to taste or smell.

Red-money Income

Is not a standard economic term and may refer to disposable income after taxes, but without an established definition, it's speculative.

Trust

A firm belief in the reliability, truth, ability, or strength of someone or something, often considered fundamental in social, economic, and political relationships.