Question

The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.

Select one:

True

False

Answer #1

The Lorenz curve can be defined as the graphical representation of the distribution of income. In this curve the cumulative percentage of income is plotted against the cumulative percentage of population. If the Lorenz curve is farther from line of equality, the income inequality will be high and vice-versa.

Hence it can be said that the closer the Lorenz curve is to the diagonal, the lower is the degree of income inequality.

Hence the given statement is false.

Hence option False is the correct answer.

Which curve diplays the least inequality among Lorenz Curves A,
B, C and D?
Select one:
a. A
b. B
c. C
d. D

1. Some economists feel that:
a.there will always be inequality in a market system, because
people will always make poor choices.
b. Most economists would agree with one or more of these
theories.
c.the shift toward freer markets around the world has widened
inequalities.
d.the shift toward greater economic growth around the world has
widened inequalities.
2. Economic discrimination is one of the causes of income
inequality. False/True
3. The Lorenz curve for wealth in the United States:
a.has a...

a. Describe the relationship that the so-called Lorenz curve
traces out.
b. Many of the most commonly used measurements of the size
income distribution are related to the Lorenz curve. Give two
examples.

1. If the technology (production function) and all the Solow
model parameters are same for two economies, they will eventually
converge to the same steady state levels of per-capita capital even
if they start at different levels of initial k.
True
False
2. If the technology (production function) and all the Solow
model parameters are same for two economies, more time taken will
be needed to reach steady state for the economy with high initial
level of per-capita capital?
True...

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...

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...

The Lorenz curve typically breaks income distribution into:
Question 1 options:
a)
percentiles.
b)
deciles.
c)
quartiles.
d)
quintiles.
If public policies are effective in reducing the depth of
poverty, then the income deficit should be _____ and the ratio of
income to poverty should be _____.
Question 4 options:
a)
rising; rising
b)
rising; falling
c)
falling; rising
d)
falling; falling
If the poverty threshold for a family of four is $24,000 and the
Shoenfelds earned $21,000, their income...

1.
a. The Lorenz curve is a model that shows
a.
the quantity demanded in a market at different prices.
b.
the cumulative shares of income earned by different percentiles
of the population.
c.
the maximum combinations of two goods that can be produced given
a certain quantity of resources and state of technology.
d.
all of the combinations of two goods that can be achieved
through trade.
e.
none of the above
b. If a country has a surplus...

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.

True or false? All else equal, the closer the true mean is to
the hypothesized mean, μ, the greater the probability of type II
error.

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