The Lorenz curve demonstrates inequality visually, in that the _______ linear the curve, the _______ inequality exists. Multiple Choice more; less more; more less; less None of these are true.

The Lorenz curve demonstrates inequality visually, in that the _ linear the curve, the _ inequality exists. Multiple Choice more; less more; more less; less None of these are true.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter15: Poverty And Economic Inequality

Section: Chapter Questions

Problem 40CTQ: To reduce income inequality, should the marginal tax rates on the top 1 be increased?

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The Lorenz curve demonstrates inequality visually, in that the _______ linear the curve, the _______ inequality exists. Multiple Choice more; less more; more less; less None of these are true.

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If a country had perfect income equality what would the Lorenz curve look like?
To reduce income inequality, should the marginal tax rates on the top 1 be increased?
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A Lorenz curve is a graph whose axes measure the: a. total amount of income in dollars on one axis and the total number of individuals or families receiving that income or a lower one on the other. b. percentage of people (10 percent, 20 percent, etc.) on one axis and the percentage of total income received by the lowest 10 percent, the lowest 20 percent, etc., on the other. c. number of individuals or families receiving a certain income on one axis and the percentage of the total population represented by that number on the other. d. number of individuals or families in different occupations on one axis and the median income received in that occupation on the other. e. income classes (e.g., $0 to $1999 and $2000 to $3999) on one axis and the percentage of individuals or families in each such income class on the other.
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1. When Lorenz curves are __________. a. more curved the greater is the degree of income inequality b. less curved the greater is the degree of income inequality c. used in calculating Gini coefficients d. first and third option are correct 2. As the Lorenz Curve gets closer to the line of absolute equality, the ________. a. the higher is the degree of income equality b. the lower is the degree of income inequality c. the lower is the degree of income equality d. the higher is the degree of income inequality
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