Using the Lorenz Curve, the Degree of Income Inequality Is

question 32

Multiple Choice

Using the Lorenz curve, the degree of income inequality is measured by:​

• A)the line connecting all points for which a given percentage of families receives exactly the cumulative percentage of income.
• B)the distance of the Lorenz curve from the line of perfect equality.
• C)the slope of the curve.
• D)the number of times the Lorenz curve crosses the line of perfect equality.
• E)dividing the number of people below the poverty line by the total population.

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Definitions:

European Recession

A period of temporary economic decline during which trade and industrial activity are reduced, specifically within European countries.

Net Exports

The difference between a country's total exports and total imports.

Aggregate Demand

The overall call for goods and services in an economic setting, quantified at an established aggregate price level during a specific time span.

Government Purchases

Government purchases include spending on goods and services by the government that is part of the nation's gross domestic product (GDP).