Question

Consider the area between the line of perfect income equality and the Lorenz curve. In country...

Consider the area between the line of perfect income equality and the Lorenz curve. In country A this area is larger than in country B. It follows that??????

the bottom 20 percent income group receives a lower percentage of total income in country A than in country B.

the bottom 20 percent income group receives a lower percentage of total income in country B than in county A.

the top 20 percent income group receives a higher percentage of total income in country B than in country A.

the top 20 percent income group receives a higher percentage of total income in country A than in country B.

none of the above

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
  • Option b is the answer.
  • The Bottom 20 percent income group receives a lower percentage of total income in country B than in country A.
  • Lorenz curve is a graphical representation for representing the wealth distribution among the people of a country. Here, the question has mentioned that the area between the line of perfect income equality and Lorenz curve has larger area for country A than country B. This itself indicates that people at the bottom part of the country B is having lower percentage of income than that of country A.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Lorenz curve is a.a graph of the income distribution that expresses the relationship between the...
The Lorenz curve is a.a graph of the income distribution that expresses the relationship between the cumulative percentage of households and the cumulative percentage of wealth. b.a graph of the income distribution that expresses the relationship between the cumulative percentage of individuals and the cumulative percentage of income. c.a graph of the income distribution that expresses the relationship between the cumulative percentage of households and the cumulative percentage of income. d.a graph of the tax share distribution that expresses the...
The function L(x)=0.6847x^2+0.0522x represents the Lorenz Curve for Country Y’s income distribution in 1996. a Compute...
The function L(x)=0.6847x^2+0.0522x represents the Lorenz Curve for Country Y’s income distribution in 1996. a Compute the percent of wealth the upper 30% of the population controlled. bCompute the percent of wealth the lower 60% of the population controlled. c Determine the Gini index of Country Y.
32) The market for used cars is used by the textbook to illustrate the problem of...
32) The market for used cars is used by the textbook to illustrate the problem of free riding adverse selection moral hazard negative externalities positive externalities 33) Moral hazard and adverse selection both arise from a more general phenomenon known as nonexcludability the free rider problem spillover effects rent-seeking asymmetric information 34) According to the textbook, which of the following are problems that complicate the interpretation of official data on the distribution of income? the quintiles contain unequal populations the...
1.For a competitive, profit-maximizing firm, the labor demand curve is the same as the Group of...
1.For a competitive, profit-maximizing firm, the labor demand curve is the same as the Group of answer choices marginal revenue curve. marginal product curve. marginal cost curve. marginal revenue product curve. 2.Scenario 21 Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms...
19. The method we used to determine whether a country/society was better or worse off after...
19. The method we used to determine whether a country/society was better or worse off after a change in policy or a movement towards free trade (from autarky) was a. by calculating the net effects b. by examining the total surplus c. by considering the deadweight loss triangles d. all of the above e. none of the above (not including d) ------------------------------------------------------------------------------------------------------------------------- 20. Consider the small Home country doing tariffs under PC. Which of the following statements is true? a....
Ricardian Model: Import Demand Curve Consider Thailand and Germany. Germany imports electronics and exports cars. The...
Ricardian Model: Import Demand Curve Consider Thailand and Germany. Germany imports electronics and exports cars. The German population is 200 and each worker can produce either one car or one electronic good. German consumers have the following Cobb Douglas preferences: U=Qc^1/2 Qe^1/2. Let’s focus on cases where the relative price or electronics is lower than in autarky in Germany. A) what is the relative price of electronics in autarky in Germany? B) what is total income of consumers in Germany,...
An income consumption curve shows what happens to the consumer's consumption of good X as nominal...
An income consumption curve shows what happens to the consumer's consumption of good X as nominal income increases and Group of answer choices the price of X falls. the prices of X and Y stay constant. the price of Y falls. real income stays constant. Flag this Question Question 5 5 pts If you were selling a product in a setting where incomes were rapidly rising, which of the 4 Engel curve slopes listed below would you prefer for your...
QUESTION 11 Consider a case where a country imports of very large quantity of Good R...
QUESTION 11 Consider a case where a country imports of very large quantity of Good R and the Terms of Trade Effects Tariff Model holds. When the country changes from trade in Good R without a tariff to trade in Good R with a tariff (assuming no retaliation on that product), a. the total surplus of foreign producer countries falls and the world total surplus falls b. the total surplus of foreign producer countries falls and the world total surplus...
31. Increases in demand are graphed as rightward shifts of the demand curve. Similarly, increases in...
31. Increases in demand are graphed as rightward shifts of the demand curve. Similarly, increases in supply are graphed as rightward shifts of the supply curve. Group of answer choices True False 32. Assume the income elasticity of a car is 0.75. If consumer income decreases by 5%, the quantity demanded would _______ by _______. Group of answer choices increase 5.75% increase, 3.75% increase, 4.25% increase, 1.33% decrease, 3.75% 33. Which of the following will result in a definite increase...
1).A market model in which there are many sellers facing a downward sloping demand curve with...
1).A market model in which there are many sellers facing a downward sloping demand curve with fairly easy entry/exit is: a) Oligopoly, b) Perfect competition, c) Monopoly or d) Monopolistic competition 2) The top 4 agricultural commodities produced in Texas ( by value) are: (TDA Lab) a) cattle, broilers, cotton , milk, b) cattle, cotton. wheat. milk c) cattle, corn, fruits, milk d) pork, wheat, vegetables, eggs 3) Five Rivers one time capacity (heads) is _____ a) below 500,000 b)...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT