The Diagonal Line in a Lorenz Curve Represents Perfect

question 102

Multiple Choice

The diagonal line in a Lorenz curve represents perfect:

• A) inequality in the distribution of personal income.
• B) equality in the distribution of personal income.
• C) inequality in factor shares of personal income.
• D) equality in factor shares of personal income.

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Definitions:

GATT

The General Agreement on Tariffs and Trade, an international treaty designed to reduce tariffs and other barriers to trade between member countries.

International Agreement

A formal accord between two or more countries that outlines specific commitments each nation agrees to fulfill, often related to trade, defense, or cultural exchanges.

Liberalization

The process of reducing restrictions on economies, typically by removing trade barriers and deregulating capital markets.

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified period.