Which of the following statements regarding the Lorenz curve is FALSE?
A) A Lorenz curve is a geometric representation of the distribution of income.
B) A Lorenz curve that is perfectly straight represents complete income equality.
C) The less bowed is a Lorenz curve, the less equally income is distributed.
D) The more bowed is a Lorenz curve, the more unequally income is distributed.
C
You might also like to view...
The biggest flaw in the logic of the labor argument is the failure to consider
A) the needs of developing countries. B) the impact of tariffs on inflation. C) the differences in national productivity levels. D) the strategy of multinational businesses. E) the impact on employment levels.
When a primary dealer sells a government bond to the Federal Reserve, reserves in the banking system ________ and the monetary base ________, everything else held constant
A) increase; increases B) increase; decreases C) decrease; increases D) decrease; decreases