The 45° Line on a Lorenz Curve Represents

question 13

Multiple Choice

The 45° line on a Lorenz curve represents

• A) complete income equality.
• B) complete income inequality.
• C) complete wealth equality.
• D) complete wealth inequality.

---

Definitions:

Tariff

A tax imposed on imported goods and services to regulate trade by making imports more expensive than local products.

Total Revenue

The total amount of money received by a company from sales of goods or services, before any expenses are subtracted.

Infant Industry

An industry in its early stages of development, which may be protected by the government from international competition temporarily until it becomes competitive.

Protective Tariffs

Import taxes imposed by a country on foreign goods to protect domestic industries from competition by making imported goods more expensive.