The Lorenz Curve Demonstrates

question 40

Multiple Choice

The Lorenz curve demonstrates:

• A) inequality visually; the more linear the curve, the less inequality exists.
• B) inequality visually; the more linear the curve, the more inequality exists.
• C) average income levels per capita; the more linear the curve, the less inequality exists.
• D) average income levels per quintile; the more linear the curve, the more inequality exists.

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Definitions:

React to Each Other

The interaction or response of entities or variables when influenced by changes in each other's state or actions.

Collusion

Agreement among firms to avoid various competitive practices, particularly price reductions. It may involve either formal agreements or merely tacit recognition that competitive practices will be self-defeating in the long run. Tacit collusion is difficult to detect. In the United States, antitrust laws prohibit collusion and conspiracies to restrain trade.

Cooperative Actions

Efforts or operations undertaken cooperatively by two or more parties, often aimed at achieving a common goal.

At the Expense of Buyers

A situation where actions or policies favor sellers or another party, leading to disadvantages or costs for buyers.