The Idea That the Lorenz Curve Should Be Along the 45

question 292

Multiple Choice

The idea that the Lorenz curve should be along the 45 degree line is consistent with

• A) the productivity standard.
• B) the egalitarian principle.
• C) the conservative principle.
• D) none of the above.

---

Definitions:

Inferior Goods

Goods for which demand decreases as the income of the consumer increases, opposite to normal goods.

Income Increases

A rise in the amount of money received, especially on a regular basis, for work or through investments, which can impact consumption, savings, and overall economic well-being.

Quantity Demanded

The specific amount of a product that consumers are willing to buy at a given price, holding all other factors constant.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.