Which of the following statements is correct?OA. The farther the Lorenz curve is from the line of equality, the more unequal is the distribution of income.OB. The Lorenz curve for wealth is closer to the line of equality than the Lorenz curve for income.OC. If the Lorenz curve crosses the line of equality the distribution of income is more unequal at high income levelsthan at low income levels.D. The closer the Lorenz curve is to the line of equality, the more unequal is the distribution of income.%56MOll&78O(9)0NextItdeleSOrie1 C+CampNS TCodinhool S+Mihaile.NS 2 yeython -ers [TutaCamp org

A Lorenz curve is a graphical representation of the distribution of income or wealth within a…

Answered: Which of the following statements is…

Business

Economics

Which of the following statements is correct?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Income Distribution, Poverty, And Discrimination

Section: Chapter Questions

Problem 1SQP

See similar textbooks

Related questions

Q: Because of product differentiation, a firm in monopolistic competition Is able to restrict the entry…

A: Under monopolistic competition, there are large number of buyers and sellers selling differentiated…

Q: 1. Classical school of economic thought assumes prices to be flexible because it considers the econ-…

A: Classical school of economic thought believed that the market forces of demand and supply, which is…

Q: 6. Which of the following statements about factors of production is aise Ahe term 'factors of…

A: Factors of production are resources which are required for the production of goods and services in…

Q: Can you please answer all the question A through H.

A: A price taker is an individual/ firm with zero commands over the costs of labor and products sold…

Q: QUESTION 8 Select all that are true regarding marginal profit: O When marginal revenue exceeds…

A: Marginal profit is the profit procured by a firm or person when one extra or marginal unit is…

Q: In the following question you are asked to determine, other things equal, the effects of a given…

A: Answer: Correct option: A (increase D, increase P, increase Q) Explanation: The determinant here is…

Q: Mays and McCovey are beer-brewing companies that operate in a duopoly (two-firm oligopoly). The…

A: Oligopoly is a form of market where there is only a limited number of firms or suppliers who have a…

Q: Q.4.1 Read the excerpt in the textbox and use the information to answer the question below:…

A: If global demand for citrus fruits produced in South Africa rises, then demand for rand will also…

Q: According to the quote, why does this economist think students should study economics? As…

A: On March 23, 1998, William Poole became the Federal Reserve Bank of St. Louis' eleventh president,…

Q: Top One Enterprise Ltd earns huge profit this year and needs to pay profit tax to the government.…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: 20. If the price is $10, then there would be a 600 units, and price would rise. of 400 units and…

A: Suppose, the quantity demanded exceeds the quantity supplied at a particular price, it results in a…

Q: P than another country b icators.

A: GDP is a tool to measure growth in an economy. It is a quantitative measure and doesn't incorporate…

Q: Use the following to answer questions 3-6: The market for sweet potatoes consists of 10 identical…

A: Total cost (TC): - it is the sum of fixed and variable costs incurred in the production process.…

Q: What happens to the demand for one input when the use of a complementary input increases? When the…

A: A complementary good is a good whose appeal tends to increase with the popularity of its complement.

Q: Firm 2 Low Price Low Price 2 Firm 1 0 High Price 7 1 2 High Price 0 6 a. Does either firm have a…

A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

Q: Refer to Figure 4-18. At a price of $35, there would be a

A: As shown in diagram At price $35 Quantity demanded = 200 units Quantity Supplied = 600 units

Q: Figure 8-6 The vertical distance between points A and B represents a tax in the market. Price 22 k…

A: Consumer Surplus when there is no tax = 1/2*(22-10)*600 = 300*12 = 3600 Consumer Surplus when there…

Q: Timothy received $100 for his birthday. He wants to buy either a new skateboard or a new mp3 player…

A: Scarcity means that the resources available are less than the resources required. Resources here can…

Q: Which of the following is an example of allocative inefficiency? O A. Consumers place positive value…

A: Allocative efficiency is where the marginal cost of producing an additional good is equal to the…

Q: Which of the statements is TRUE? O A change in government spending is less effective when a…

A: change in government spending is less effective when our reservation is caused by a real shock

Q: Refer to the table. Suppose the town enacts new antitrust laws that prohibit Maria and Miguel from…

A: When in a small town in a remote area where only two residents, Maria and Miguel , own dairies that…

Q: 78. Factors that could weaken the relationship between money growth rates and changes in price…

A: When talking about the international trade, the relationship between money growth, price level, and…

Q: Consumer behavior plays a crucial element in establishing the development of a business, as it…

A: Markets are categorized in economics based on the structure of the industry that serves the market.…

Q: Refer to Figure below. The shaded area in the graph shows: * Frice (dellars per unit) AR - MR -P ATC…

A: The shaded area shows the profit could be made if the output increases from 7 to 8 units of the…

Q: Question: In a market economy: a) the price and quantity of traded goods are determined by the…

Q: Your friend runs a business of hand sanitizers. If the price per unit is 20 taka and his total…

A: Answer a) Given Information Price = 20 takaTotal Revenue = 193 taka

Q: The EPA's pollution exhaust standards for passenger vehicles are an example of what kind of approach…

A: This can be defined as a concept that shows the positive or negative impact of any particular…

Q: Which statement about the price level is correct? A It fell over the first half of the period. B It…

A: The percentage change in the Consumer Price Index (CPI) is a measure that indicates the rate of…

Q: Suppose Alex's consumption bundle is made up of 2 goods; chocolates and bottles of energy drinks. If…

A: The budget line shows the combination of two goods in respect of their prices and the quantity…

Q: Consider the table below. Assuming the law of demand holds, the cell labeled "?" could be which of…

A: Law of demand states that if price of good increases then quantity demanded for the good will…

Q: am almost positive my answer is right. Is it?

A: What large scale natural disaster may cause ? Large sacle natural disaster leads to reduced the…

Q: Use the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 15 90…

A: In a monopoly, Profit is maximised where MR = MC. MR = Marginal revenue MC = Marginal cost In a…

Q: For each of the following changes in the market for apples, explain why supply will increase,…

A: In a market, any change in the behavior of market participants or market conditions, it will affect…

Q: 12 15 Quantity aph above shows the demand and supply of wrenches for the country of Spain. If trade…

A: Equilibrium is where Qs=Qd

Q: a. Which of the following are the main arguments for UBI?

A: UBI: Universal Basic Income(UBI) is a system in which all citizens or residents of a country receive…

Q: I don't understand the answer of the question 1

A: In perfect competition, firms are price takers, meaning that they have no control over the price of…

Q: 28. According to the quantity equation, whenever the supply of money is growing at a positive rate,…

A: According to quantity theory of money, the equation can be written as follows; MV = PY

Question

Which of the following statements is correct?
OA. The farther the Lorenz curve is from the line of equality, the more unequal is the distribution of income.
OB. The Lorenz curve for wealth is closer to the line of equality than the Lorenz curve for income.
OC. If the Lorenz curve crosses the line of equality the distribution of income is more unequal at high income levels
than at low income levels.
D. The closer the Lorenz curve is to the line of equality, the more unequal is the distribution of income.
%
5
6
M
Oll
&
7
8
O
(
9
)
0
Next
It
de
le
S
Orie
1 C+
Camp
NS T
Codin
hool S
+
Mihaile.
NS 2 ye
ython -
ers [Tuta
Camp org

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If a country had perfect income equality what would the Lorenz curve look like?
Describe how a push for economic equality might reduce incentives to work and produce output. Then describe how a push for economic inequality might nut have such effects.
Table 15.9 shows the share of income going to each quintile of the income distribution for the United Kingdom in 1979 and 1991. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. How did inequality in the United Kingdom shift over this time period? How can you see the patterns in the quintiles in the Lorenz curves?
Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?
Which set of policies is more likely to cause a tradeoff between economic output and equality: policies of redistribution policies aimed at the ladder of opportunity? Explain how the production possibility frontier tradeoff between economic equality and output might look in each case.
What is measured on the two axes of a Lorenz curve?
Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how information technology can increase income inequality if it is a complement to high-income workers like salespeople and managers, but a substitute for low-come workers like file clerks and telephone receptionists.
When the Lorenz curve lies above thediagonal,a. the poorest 20 percent of the populationreceive more than 20 percent of income.b. the richest 20 percent of the populationreceive more than 20 percent ofincome.c. everyone receives the same income.d. the curve is wrong because it is impossible forthe graph to look like this.
Asap plj help
Question 2 The table shows the distributions of income in the United Kingdom and Canada. United Kingdom Cumulative percentage of Households Income Lowest 40 Lowest 80 10 50 Canada Cumulative percentage of Households Income Lowest 40 Lowest 80 20 60
Instructions: 1. Refer to the MCONNEL TEXTBOOK CHAPTER 23. DON'T USE ANY OTHER SOURCES Describe the distribution of income in the United States by personal income categories by households and quintile distribution by households. Explain how a Lorenz curve is used to describe income inequality. Define Gini ratio List seven causes of an unequal income distribution. State and evaluate the cases for and against income inequality. Define poverty as the Federal government does. Identify the rate of poverty in the U.S., and the incidence of poverty for various demographic groups, including African Americans, Hispanics, and female-headed households; identify some of the reasons for the poverty of each group. Define social insurance. Describe the major social insurance programs. What is a public assistance program? Describe the major public assistance (welfare) programs.
Which of the following is not a true statement about the Lorenz curve? A. The Lorenz curve does not consider age differences among wage earners. B. The Lorenz curve does not include unreported income obtained from the underground economy. C. The Lorenz curve does not consider different sizes of households. D. The Lorenz curve includes both money income and income in kind.