The Lorenz Curve Is Criticized for All of the Following

question 52

Multiple Choice

The Lorenz curve is criticized for all of the following EXCEPT

• A) that it excludes transfers-in-kind income.
• B) that it does not account for the size differences of households.
• C) that it does not account for age differences of households.
• D) that it does not account for the impact of trade on the standard of living.

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Definitions:

Median

The middle value in a data set, which separates the higher half from the lower half of the dataset.

National Football League

A professional American football league consisting of 32 teams, divided equally between the National Football Conference (NFC) and the American Football Conference (AFC).

Mean Number

The average of a set of numbers, calculated by dividing the sum of all values by the count of values.

Home Runs

In baseball, a hit by a batter that allows them to circle all the bases, reaching home safely in one play, usually by hitting the ball over the outfield fence.