Asked by Taylyn Vences on Jul 11, 2024
Verified
During the decade of the 1980s our Lorenz curve
A) moved inward,toward the line of perfect equality.
B) moved outward,away from the line of perfect equality.
C) stayed about the same distance from the line of perfect equality.
D) crossed the line of perfect equality.
E) became the line of perfect equality.
Lorenz Curve
A graphical representation of the distribution of income or wealth within a society, showing the proportion of the total income earned by various segments of the population.
Line Of Perfect Equality
A representation in economics and statistics showing an equitable distribution of income or wealth, where everyone has the same amount.
1980s
A decade characterized by economic neoliberal policies, technological advancements, and significant political changes worldwide.
- Familiarize oneself with the concept and analytical employment of Lorenz curves in the illustration of income distribution.
Verified Answer
AM
Alise MarkovaJul 18, 2024
Final Answer :
B
Explanation :
The Lorenz curve shows the distribution of income in a society, with a line of perfect equality representing a situation where everyone earns the same amount. If the Lorenz curve moves outward, it means inequality is increasing, as the actual distribution of income is further away from perfect equality. Therefore, the correct answer is B.
Learning Objectives
- Familiarize oneself with the concept and analytical employment of Lorenz curves in the illustration of income distribution.