Using the Lorenz Curve, the Degree of Income Inequality Is

question 2

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 flat diagonal line that applies to a perfectly elastic demand curve
• D)the number of times the Lorenz curve crosses the line of perfect equality
• E)is derived by dividing the number of people below the poverty line by the total population

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Definitions:

Reversal

The act of changing something to its opposite direction, state, or position.

Imaginary Friends

Fictional characters created by children for companionship, often seen as a normal aspect of child development.

Peer Relationships

Social connections among individuals of approximately the same age, which are important for social development.

Avoidance

A defensive mechanism where an individual steers clear of certain thoughts, feelings, or interactions due to perceived negative outcomes.