The Figure Given Below Shows the Lorenz Curves of Two

question 31

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)

-Following are the controversies over how poverty should be measured, except:

• A)government transfers and other programs are not properly taken into account in the measures of poverty.
• B)the poverty measures do not distinguish among the needs of different individuals.
• C)the concept of poverty line does not draw any distinction between income and purchasing power.
• D)the concept of poverty line does not take into account the expenditure on food by each family.
• E)the income generated in the underground economy are not taken into account.

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Definitions:

Life Insurance Policy

A contract with an insurer that pays a designated beneficiary a sum of money upon the death of the insured person.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, issued by banks to depositors.

United Way

A nonprofit organization that works worldwide, helping communities by funding partner organizations to support various social causes.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party.