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.

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Definitions:

Oral Auction

A traditional auction where bids are announced by participants verbally until the highest bid is reached.

True Values

The actual, undistorted measures or worth of an item, free from biases or errors.

Oral Auction

A live auction where bids are made through spoken communication amongst bidders.

English Auction

A type of auction where the price ascends with each subsequent bid and the highest bidder wins.