西方经济学教学课件-chapter 19

Microeconomics,lie(Parkin)

Chapter19EconomicInequality

1EconomicInequalityintheUnitedStates

1)Marketincomeis

A)profitearnedinfactormarkets.

B)interestearnedinfactormarkets.

C)wages,interest,rent,andprofitearnedinfactormarkets.

D)wages,interest,rent,andprofitearnedinfactormarketspluscashpaymentsmadetohouseholdsby

govermnent.

Answer:C

Topic:MarketIncome

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

2)Marketincomeis

A)wage,interest,rent,andprofitearnedinfactormarkets.

B)wageincome.

C)wageandsalaryincome.

D)moneyincome.

Answer:A

Topic:MoneyIncome

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

3)Moneyincomeis

A)marketincomepluscashpaymentsfromgovernment.

B)equaltomarketincome.

C)marketincomepluscashpaymentsfromgovernmentminustaxes.

D)marketincomeminustaxes.

Answer:A

Topic:MoneyIncome

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

4)Themodehouseholdincomeis

A)theincomethatseparateshouseholdsintotwoequalgroups.

B)themostcommonhouseholdincome.

C)themeanhouseholdincome.

D)theaveragehouseholdincome.

Answer:B

Topic:ModeIncome

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

5)Modeincomeis

A)themostcommonincome.

B)theaverageincome.

C)themiddleincomelevel.

D)thesameasmoneyincome.

Answer:A

Topic:ModeIncome

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

6)Themedianhouseholdincomeis

A)theincomethatseparateshouseholdsintotwoequalgroups.

B)themostcommonhouseholdincome.

C)themeanhouseholdincome.

D)theaveragehouseholdincome.

Answer:A

Topic:MedianIncome

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

7)Themeanhouseholdincomeis

A)theincomethatseparateshouseholdsintotwoequalgroups.

B)themostcommonhouseholdincome.

C)thepercentageoftotalincomereceivedbytherichest20percentofhouseholds.

D)theaveragehouseholdincome.

Answer:D

Topic:MeanIncome

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

8)IntheUnitedStates

A)therearemorehouseholdswithincomesbelowthemeanincomethanabovethemeanincome.

B)therearemorehouseholdswithincomesabovethemeanincomethanbelowthemeanincome.

C)themodeincomeequalsthemeanincome.

D)theincomedistributionisbellshaped.

Answer:A

Topic:EconomicInequalityintheUnitedStates

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

9)IntheUnitedStates,themedianhouseholdincomeisthanthemeanincome,whichmeans

therearehouseholdswithlowincomesthanwithhighincomes.

A)less;more

B)greater;more

C)greater;fewer

D)less;fewer

Answer:A

Topic:EconomicInequalityintheUnitedStates

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

10)ThedistributionofincomeintheUnitedStatesischaracterizedbythefollowingrelationshipbetween

themean,median,andmodeincomes:

A)meanincome<medianincome<modeincome.

B)modeincome<medianincome<meanincome.

C)medianincome<meanincome<modeincome.

D)modeincome<meanincome<medianincome.

Answer:B

Topic:DistributionofIncome

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

11)ThedistributionofincomeintheUnitedStatesisskewedsothatthemodelevelofhouseholdincome

isthemedianhouseholdincomeandthemedianhouseholdincomeisthanthemean

householdincome.

A)lessthan;lessthan

B)lessthan;greaterthan

C)greaterthan;greaterthan

D)greaterthan;lessthan

Answer:A

Topic:DistributionofIncome

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

12)TheincomedistributionintheUnitedStatesis

A)positivelyskewed.

B)negativelyskewed.

C)bell-shaped

D)uniform.

Answer:A

Topic:DistributionofIncome

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

13)ThedistributionofU.S.incomeisnotbell-shapedbecause

A)therearemorehouseholdswithincomesbelowthemeanincomethanabovethemeanincome.

B)therearemorehouseholdswithincomesabovethemeanincomethanbelowthemeanincome.

C)themodeincomeequalsthemeanincome.

D)theincomedistributionisbellshaped.

Answer:A

Topic:DistributionofIncome

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

14)IntheUnitedStates,thepercentageofhouseholdsthathaveincomesbelowthemeanincomeis

A)50percent.

B)lessthan50percent.

C)morethan50percent.

D)0percent.

Answer:C

Topic:DistributionofIncome

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

15)IntheUnitedStatestherichest20percentofhouseholdsreceiveaboutoftotalincome.

A)10percent

B)20percent

C)50percent

D)80percent

Answer:C

Topic:EconomicInequalityintheUnitedStates

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

16)IntheUnitedStatesthepoorest20percentofhouseholdsreceiveaboutoftotalincome.

A)1percent

B)4percent

C)10percent

D)15percent

Answer:B

Topic:EconomicInequalityintheUnitedStates

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

Percentof

Percentofincome

households

(percent)

(percent)

Lowest2015

Second2015

Third2020

Fourth2020

Highest2030

17)Aneconomyhastheincomesharesinformationinthetableabove.Whichofthefollowingistrue?

A)TheinformationinthetablerepresentstheincomedistributionintheUnitedStates.

B)IncomeintheU.S.economyismoreequallydistributedthanthatrepresentedinthetable.

C)IncomeintheU.S.economyislessequallydistributedthanthatrepresentedinthetable.

D)TheinformationinthetablerepresentsthewealthdistributionintheUnitedStates.

Answer:C

Topic:EconomicInequalityintheUnitedStates

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

18)Asatoolthatisusedtomeasureinequalityinthedistributionofincome,theLorenzcurvegraphs

A)thecumulativepercentageofincomeagainstthecumulativepercentageofhouseholds.

B)thepercentageoftotalincomereceivedbyeachgivenpercentageofhouseholds.

C)themeanincome,medianincome,andmodeincomeagainstthepercentageofhouseholds.

D)themeanincomereceivedbyhouseholdsovertime.

Answer:A

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

19)TheLorenzcurvegraphsthe

A)cumulativepercentageofspendingagainstthecumulativepercentageofhouseholds.

B)marginalpercentageofincomeagainstthemarginalpercentageofhouseholds.

C)cumulativepercentageofincomeagainstthecumulativepercentageofhouseholds.

D)cumulativepercentageofspendingagainstthemarginalpercentageofhouseholds.

Answer:C

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

20)ALorenzcurvegraphsthe

A)percentageofincomeorwealthagainstthepercentageofhouseholds.

B)cumulativepercentageofincomeorwealthagainstthecumulativepercentageofhouseholds.

C)cumulativevalueofincomeagainstthecumulativepercentageofhouseholds.

D)percentageofwealthagainstthepercentageofincome.

Answer:B

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

21)ALorenzcurvemeasures

A)thebenefitsreceivedthroughwelfareprograms.

B)theactualincomedistributionandcomparesittoanequalincomedistribution.

C)thedegreetowhichincometaxesareregressive.

D)theeffectofflattaxesonincomedistribution.

Answer:B

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

22)ALorenzcurvecanbeusedtoillustrate

A)thesupplyoflabor.

B)thesubstitutione仔ect.

C)theincomeeffect.

D)thedistributionofincome.

Answer:D

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

23)TheLorenzcurve

A)explainswhysomehouseholdshavedifferentincomes.

B)explainswhyincomeisequallydistributed.

C)graphicallyshowsthedegreeofincomeinequality.

D)graphicallyshowstheamountofwealthinacountry.

Answer:C

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

24)Fromlefttoright,thehorizontalaxisoftheLorenzcurverankshouseholdsfrom

A)smallesttolargest.

B)largesttosmallest.

C)pooresttorichest.

D)richesttopoorest.

Answer:C

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

25)CountryAhasamoreequaldistributionofincomethancountryBif

A)countryA'sLorenzcurveisclosertothelineofequalitythaniscountryB*sLorenzcurve.

B)countryB'sLorenzcurveisclosertothelineofequalitythaniscountryA'sLorenzcurve.

C)countryA'sLorenzcurveisjustasclosetothelineofequalityasiscountryB'sLorenzcurve.

D)Noneoftheabovebecauseitisimpossibletocompareincomeinequalitiesacrosscountries.

Answer:A

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

26)ThefarthertheLorenzcurveforincomeisfromthelineofequality,themoreisdistributed.

A)equallywealth

B)unequallyincome

C)unequallywealth

D)equallyincome

Answer:B

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

27)IfaLorenzcurveforacountry'sincomebowsmorerightwardovertime,thenthecountry's

A)incomeisincreasing.

B)incomeisdecreasing.

C)incomeisbecomingmoreunequallydistributed.

D)incomeisbecomingmoreequallydistributed.

Answer:C

Topic:LorenzCurve

Skill:Definition

Status:Old

AACSB:AnalyticalSkills

28)IfaLorenzcurveforincomemovesrightwardandbecomesmorebowedoutovertime,then

A)thepopulationisgrowing.

B)incomeisgrowing.

C)incomeisbeingmoreequallydistributed.

D)incomeisbeingmoreunequallydistributed.

Answer:D

Topic:LorenzCurve

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

29)IfaLorenzcurvemovesleftwardandbecomesclosertothelineofequalityovertime,then

A)thepopulationisgrowing.

B)incomeisgrowing.

C)incomeisbeingmoreequallydistributed.

D)incomeisbeingmoreunequallydistributed.

Answer:C

Topic:LorenzCurve

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

PercentofPercentof

Group

incomewealth

Poorest20%50

Poorest40%152

Poorest60%305

Poorest80%5510

30)TheabovetableshowsthedistributionofincomeandwealthinMiseria.Whatpercentofincomeis

earnedbytherichesttwentypercent?

A)5percent

B)20percent

C)45percent

D)55percent

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

31)TheabovetableshowsthedistributionofincomeandwealthinMiseria.Whatpercentofincomeis

earnedbytherichest40percentofthepopulation?

A)20percent

B)30percent

C)55percent

D)70percent

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

32)TheabovetableshowsthedistributionofwealthandincomeforMiseria.Whatpercentofthewealth

isownedbythewealthiesttwentypercentofthepopulation?

A)0percent

B)2percent

C)5percent

D)83percent

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

33)TheabovetableshowsthedistributionofwealthandincomeforMiseria.Whatpercentofwealthis

ownedbythepoorestfortypercentofthepopulation?

A)0percent

B)2percent

C)5percent

D)10percent

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

34)TheabovetableshowsthedistributionofwealthandincomeinMiseria.Whatpercentofwealthis

ownedbythepooresttwentypercent?

A)0percent

B)2percent

C)3percent

D)5percent

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

35)TheabovetableshowsthedistributionofwealthandincomeinMiseria.TheLorenzcurveforwealth

would

A)beparalleltothelineofequality.

B)lietotheleftoftheLorenzcurveforincome.

C)becomeflatterwhenmovingfromlefttoright.

D)intersectthehorizontalaxisattwentypercent.

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

36)TheabovetableshowsthedistributionofwealthandincomeinMiseria.TheLorenzcurveforwealth

would

A)intersectthehorizontalaxisat100percent.

B)bowoutwardmoretotherightthandoestheLorenzcurveforincome.

C)lieparalleltothelineofequality.

D)becomeflatterasonemovesfromlefttoright.

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

37)TheabovetableshowsthedistributionofwealthandincomeinMiseria.Withrespecttoincome,the

richesttwentypercentofthepopulationearn

A)90percentoftheincome.

B)11timesasmuchasthepooresttwentypercent.

C)9timesasmuchasthepooresttwentypercent.

D)justasmuchasthesecondrichesttwentypercent.

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

38)TheabovetableshowsthedistributionofwealthandincomeinMiseria.Ninety-fivepercentofthe

wealthisownedbywhatpercentofthepopulation?

A)20percent

B)40percent

C)60percent

D)95percent

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

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39)Intheabovefigure,thestraightlinebetweenthelowerleftcornerandtheupperrightcomershows

A)perfectequalityinincomedistribution.

B)perfectinequalityinincomedistribution.

C)thatwealthrisesasincomerises.

D)thathouseholdsizerisesasincomerises.

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

40)Inthefigureabove,incomeismostunequallydistributed

A)inCountryA.

B)inCountryB.

C)inCountryC.

D)inoneofthenations,butwithoutmoreinformation,itisnotpossibletodetermineinwhichcountry

incomeisdistributedmostunequally.

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

41)Inthefigureabove,income

A)ismostequallydistributedincountryA.

B)ismostequallydistributedincountryB.

C)ismostequallydistributedincountryC.

D)isequallydistributedinallthreecountries.

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

42)Inthefigureabove,inwhichcountrydothelowest-income30percentofhouseholdshavethehighest

fractionofthenation'sincome?

A)CountryA

B)CountryB

C)CountryC

D)Itisimpossibletoanswerthequestionwithoutmoreinformation.

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

43)Inthefigureabove,inwhichcountrydothehighest-income30percentofhouseholdshavethe

highestfractionofthenation'sincome?

A)CountryA

B)CountryB

C)CountryC

D)Itisimpossibletoanswerthequestionwithoutmoreinformation.

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

44)Inthefigureabove,10percentofincomeincountryAisdistributedtothe

A)richest10percentofthehouseholds.

B)poorest10percentofthehouseholds.

C)richest30percentofthehouseholds.

D)poorest30percentofthehouseholds.

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

45)Inthefigureabove,10percentofincomeincountryCisdistributedtothe

A)richest10percentofthehouseholds.

B)poorest10percentofthehouseholds.

C)poorest30percentofthehouseholds.

D)poorest70percentofthehouseholds.

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

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46)TheabovefigureshowstheLorenzcurvesforfourdifferentcountries.Whichcountryhasthemost

unequaldistributionofincome?

A)countryA

B)countryB

C)countryC

D)countryD

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

47)TheabovefigureshowstheLorenzcurvesforfourdifferentcountries.Inwhichcountryisincome

mostequallydistributed?

A)countryA

B)countryB

C)countryC

D)countryD

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

48)TheabovefigureshowstheLorenzcurvesforfourdifferentcountries.IfcountryCimplementeda

policyofredistributionfromrichtopoor,itsLorenzcurvewould

A)movetowardcountryB*s.

B)movetowardcountryD's.

C)becomepositivelysloped.

D)moveabovethelineofequality.

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

49)TheabovefigureshowstheLorenzcurvesforfourdifferentcountries.Whichofthefollowing

statementsCANNOTbemadeonthebasisofthegraph?

A)Incomesaredistributedunequallyinallfourcountries.

B)IncomedistributionincountryDisthemostunequalamongthefourcountries.

C)IncomesarehigherincountryAthanincountryB.

D)IncomedistributionismoreequalincountryBthanincountryD.

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

50)TheabovefigureshowstheLorenzcurvesforfourdifferentcountries.Whichofthefollowing

statementsisFALSE?

A)CountryAhasanincomedistributionthatisnotperfectlyequal.

B)CountryD'sincomedistributionisthemostunequalofthefourcountries.

C)ThedistributionofincomeismoreunequalincountryAthanincountryB.

D)ThedistributionofincomeismoreunequalincountryDthanincountryC.

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

51)TheabovefigureshowstheLorenzcurvesforfourdifferentcountries.Whichofthefollowing

statementsCANbemadeonthebasisofthegraph?

A)CountryChasthebestbalancebetweenequityandefficiency.

B)CountryAisasocialistcountry.

C)TheincomedistributionismoreequalincountryBthanincountryD.

D)alloftheabove

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

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52)Inthefigureabove,thepoorest40percentofallhouseholdsreceivewhatshareofincome?

A)10percent

B)20percent

C)40percent

D)60percent

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

53)Inthefigureabove,thethirdlowest20percentofallhouseholdsreceivewhatshareofincome?

A)10percent

B)30percent

C)20percent

D)5percent

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

①

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①

6

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C

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①

d

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54)Inthefigureabove,theLorenzcurvethatshowstheleastinequality,butNOTperfectequality,is

A)curveA.

B)curveB.

C)curveC.

D)curveD.

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

55)Inthefigureabove,thelineofequalityis

A)curveA.

B)curveB.

C)curveC.

D)curveD.

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

56)Inthefigureabove,lineArepresentsthe

A)thelineofmarketincomedistribution.

B)lineofequality.

C)lineofequalnumberofpeopleineachhousehold.

D)lineofequalconsumptionineachhousehold.

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

57)Inthefigureabove,theLorenzcurvethatshowstherichest20ofhouseholdspercentreceiving60

percentofallincomeis

A)curveA.

B)curveB.

C)curveC.

D)curveD.

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

58)Inthefigureabove,theLorenzcurvethatshowstherichest20percentofhouseholdsreceiving40

percentofallincomeis

A)curveA.

B)curveB.

C)curveC.

D)curveD.

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

59)Inthefigureabove,theLorenzcurvethatshowstherichest20percentofhouseholdsreceiving80

percentofallincomeis

A)curveA.

B)curveB.

C)curveC.

D)curveD.

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

①

o

①

6

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60)Inthefigureabove,thelowest20percentofallhouseholdsreceivepercentofallincome,the

nextlowest20percentreceivepercentofallincomeandtherichest20percentreceive

percentofallincome.

A)20;20;20

B)20;40;100

C)10;20;40

D)10;10;40

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

61)Inthefigureabove,therichest20percentofallhouseholdsreceivewhatshareofallincome?

A)10percent

B)20percent

C)30percent

D)40percent

Answer:D

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

62)Inthefigureabove,thepoorest20percentofallhouseholdsreceivewhatshareofallincome?

A)10percent

B)20percent

C)30percent

D)40percent

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

63)Inthefigureabove,thesecondpoorestfifthofallhouseholdsreceivewhatshareofallincome?

A)10percent

B)20percent

C)30percent

D)40percent

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

64)Inthefigureabove,themiddlefifthofallhouseholdsreceivewhatshareofallincome?

A)10percent

B)20percent

C)30percent

D)40percent

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

65)Inthefigureabove,thecurvegoingthroughpointArepresents

A)anupward-slopingdemandcurve.

B)thelineofequality.

C)thewagecurve.

D)theLorenzcurve.

Answer:D

Topic:LorenzCurve

Skill:Conceptual

Status:Old

AACSB:AnalyticalSkills

020406080100

Cumulativepercentageofhouseholds

66)Intheabovefigure,pointshowsanequaldistributionofincome,whilepoint

showsanunequaldistributionofincome.

匕

A)

«,"c

BO)

历n

D)小d

Answer:C

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

67)Intheabovefigure,iftheLorenzcurveweretomoveclosertothediagonallinecontainingpointsb

andc,theincomedistributionwouldbe

A)moreunequal.

B)moreequal.

C)unchanged.

D)Moreinformationisneededtodeterminehowthischangewouldaffecttheincomedistribution.

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

68)Intheabovefigure,theLorenzcurveforincomeisshown.IfthedatausedarefromtheUnitedStates,

andtheU.S.Lorenzcurveforwealthwasaddedtothediagram,itwouldbe

A)furtherfromthelineofequalitythantheLorenzcurveforincome.

B)closertothelineofequalitythantheLorenzcurveforincome.

C)abovethelineofequality.

D)thesameastheLorenzcurveforincome.

Answer:A

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

00

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69)TheLorenzcurveintheabovefigureimpliesthat

A)incomeisequallydistributed.

B)thelowestfifthofhouseholdsaccountforlessthan20percentofincome.

C)thehighestfifthofhouseholdsaccountforlessthan20percentofincome.

D)thelowestfifthofhouseholdsaccountformorethan20percentofincome.

Answer:B

Topic:LorenzCurve

Skill:Analytical

Status:Old

AACSB:AnalyticalSkills

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100

80

60

40

20

0

olds

useh

ofho

entage

eperc

lativ