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6. Every Lorenz curve diagram begins with a line sloping up at a 45-degree angle. The points along this line show 

a. perfect equality of the income distribution

b. imperfect equality of the income distribution

c. perfect inequality of the income distribution

 

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Raushan Raj
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1 Nov 2020
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Related questions

7. In a Lorenz diagram for income, the line of equality shows

a. the most equitable income distribution.

b. how unequally incomes are distributed.

c. how much redistribution occurs.

d. the income distribution if everyone in the population received the same income.

QUESTION 11

A Gini coefficient of zero means there is

perfect income equality.

perfect income inequality.

a more equal distribution of income than before.

a less equal distribution of income than before.

the same distribution of income as before.

1 points

QUESTION 12

The larger the Gini coefficient, the

greater the degree of income inequality.

greater the degree of income equality.

smaller the population.

larger the population.

b and d

1 points

QUESTION 13

Smith and Jones work at very similar jobs, but Smith earns almost 30 percent more a day than Jones. This is a case of __________ discrimination.

gender

religious

wage

ethnic

There is not enough information to answer the question.

1 points

QUESTION 14

The closer the Gini coefficient is to zero, the

greater the degree of income inequality.

less the degree of income inequality.

greater the degree of discrimination.

less the degree of discrimination.

1 points

QUESTION 15

Smith and Jones are different when it comes to taking risk. Smith will assume much more risk than Jones. It follows that

Smith will earn more income than Jones.

Jones will earn more income than Smith.

Smith has a higher probability than Jones of earning a higher income.

Smith has a higher probability than Jones of earning a lower income.

c and d

If a nation's Lorenz curve lies on the 45-degree line of income equality:

A. proportionately more of the nation's income is received by the lowest 20% of families than by the highest 20%.

B. income is unequally distributed.

C. proportionately more of the nation's income is received by the highest 20% of families than by the lowest 20%.

D. the income received by each 20% of families is 20% of the total income.

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