Asked by Owuraku Agyekum on Apr 29, 2024
Verified
The Lorenz curve showing perfect income equality would be
A) I.
B) J.
C) K.
D) L.
E) M.
Lorenz Curve
Data plotted to show the percentage of income enjoyed by each percentage of households, ranked according to their income.
Perfect Income Equality
A theoretical economic condition where all individuals or households earn exactly the same income, leading to absolute equity in income distribution.
- Attain knowledge on the concept and application of Lorenz curves in the analysis and depiction of income distribution.
Verified Answer
VM
Victoria MoralesApr 30, 2024
Final Answer :
B
Explanation :
The Lorenz curve showing perfect income equality would be a straight diagonal line from the bottom left corner to the top right corner of the graph, representing that everyone has the same income. This description matches option B.
Learning Objectives
- Attain knowledge on the concept and application of Lorenz curves in the analysis and depiction of income distribution.