Table 141 Incomes in Pololand -The Lorenz Curve Will ________ Whenever the Distribution of Family

question 55

Multiple Choice

Table 14.1 Incomes in Pololand
$$\begin{array} { l l l l l } & \text { Period 1 } & \text { Period 2 } & \text { Period 3 } & \text { Period 4 } \\\hline \text { Thomas } & \$ 50,000 & \$ 40,000 & \$ 60,000 & \$ 100,000 \\\text { Nina } & \$ 40,000 & \$ 40,000 & \$ 40,000 & \$ 80,000 \\\text { Becky } & \$ 30,000 & \$ 30,000 & \$ 30,000 & \$ 60,000 \\\text { Rose } & \$ 20,000 & \$ 20,000 & \$ 20,000 & \$ 40,000 \\\text { Charlie } & \$ 10,000 & \$ 20,000 & \$ 0 & \$ 20,000 \\\hline\end{array}$$
-The Lorenz curve will ________ whenever the distribution of family income becomes less equal.

• A) move closer to the diagonal line
• B) become straighter
• C) move farther from the diagonal line
• D) cross the previous Lorenz Curve

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Definitions:

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, usually identified by a fall in GDP in two successive quarters.

Opportunity Cost

The price paid for not selecting the next most favorable choice during a decision-making process.

Marginal Productivity

The additional output that is produced by using one more unit of a particular input, holding all other inputs constant.

Tourist Income

Revenue generated by a country or region from visitors who travel there from other areas, spending on accommodations, attractions, and other services.