A diagonal straight line on a Lorenz curve represents

A) a perfectly unequal distribution of income (one person has everything).
B) a perfectly equal distribution of income.
C) a high level of inequality in the distribution of income.
D) an oblique distribution of income.

Answer: B

Economics

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A situation in which the market system allocates too few resources to the production of a given activity is known as

A) market allocation. B) market failure. C) market efficiency. D) market signaling.

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