Asked by Joleecia Gresham on Jun 17, 2024
Verified
If a nation's Lorenz curve lies on the line of income equality
A) proportionately more of the nation's income is received by the lowest 20% of families than 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 the lowest 20%.
D) the income received by each 20% of families is 20% of the total income.
Income Equality
The equal distribution of income among all members of society, reducing the gap between the richest and poorest.
Lorenz Curve
A graphical representation used in economics to show the distribution of income or wealth within a society, illustrating inequality.
- Acquire knowledge on how the allocation of income and inequality influence poverty levels.
Verified Answer
RG
Rafael GonzalezJun 24, 2024
Final Answer :
D
Explanation :
When a nation's Lorenz curve lies on the line of income equality, it means that income is distributed equally among the population. Therefore, each 20% segment of families receives exactly 20% of the total income, indicating perfect income equality.
Learning Objectives
- Acquire knowledge on how the allocation of income and inequality influence poverty levels.