Using the Lorenz curve, the degree of income inequality is measured by the:
a. line connecting all points for which a given percentage of families receives exactly that cumulative percentage of income.
b. distance of the Lorenz curve from the line of perfect equality.
c. flat diagonal line that applies to a perfectly elastic demand curve.
d. number of times the Lorenz curve crosses the line of perfect equality.
b
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Today, the United States is a
I. net borrower. II. net lender. III. debtor nation. IV. creditor nation. A) I and IV B) II and IV C) I and III D) II and III
In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. Regarding the production of good X
A) country A has an absolute advantage. B) country B has an absolute advantage. C) country A has a comparative advantage. D) country B has a comparative advantage.