Figure 167 Figure 16

question 23

Multiple Choice

Figure 16.7 Figure 16.7 shows the Lorenz curve for a hypothetical country.
-Refer to Figure 16.7.The second highest 20 per cent of households

• A)earn 24 per cent of the society's total income.
• B)earn 28 per cent of the society's total income.
• C)earn 42 per cent of the society's total income.
• D)earn 72 per cent of the society's total income.

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Definitions:

Disposable Income

The capital households have to spend and save once income taxes have been cleared.

Disposable Income

The financial resources that households have at their disposal for spending and saving after income tax deductions.

Savings

Money set aside for future use rather than spending immediately, often in accounts designed for long-term growth or security.

Disposable Income

Post-tax income households possess for saving or spending purposes.