If income is distributed equally, the
A. Gini coefficient is greater than zero.
B. Line of equality sags below the Lorenz curve.
C. Lorenz curve is a straight line.
D. Lorenz curve sags below the line of equality.
Answer: C
Economics
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An increase in government purchases, ceteris paribus, will
A) increase public saving. B) reduce investment. C) increase the supply of loanable funds. D) reduce real GDP.
Economics
When GDP is measured as the total payments made to households that furnish the resources used to produce the final goods and services, it is known as:
a. the income approach. b. the expenditure approach. c. the depreciation approach. d. the aggregate demand approach. e. net national product.
Economics