Refer to the Above Graph,which Shows Four Different Lorenz Curves

question 54

Multiple Choice

Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV) .The movement from point b to point e in the graph would indicate that:

• A) 80 percent of households now receive 40 percent of income instead of 60 percent of households.
• B) 80 percent of income goes to 40 percent of households instead of 60 percent of households.
• C) 40 percent of income goes to 60 percent of households instead of 80 percent of households.
• D) 60 percent of households now receive 20 percent instead of 60 percent of income.