The Figure Given Below Shows the Lorenz Curves of Two

question 6

Multiple Choice

The figure given below shows the Lorenz curves of two countries (Country A and Country B) .Figure 19.2
Total income (cumulative percentage)
Total population (cumuative percentage)

-Which of the following is an example of in-kind transfer?

• A)Social security benefits
• B)Food stamps
• C)Disability pensions
• D)Unemployment compensations
• E)Earned income tax credit

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Definitions:

Maximum Price

A price ceiling set by the government to prevent prices from soaring to levels that are too high for most consumers to afford.

Profit-maximizing Level

The output level at which a firm achieves the highest profit, where marginal cost equals marginal revenue.

Pure Monopolist

A single seller in a market that produces a unique product or service without close substitutes, controlling the entire supply.

Fair Return

A profit level that allows a business to maintain its operations and justify the risk of investment, often considered in regulatory contexts.