Figure 33.3 illustrates Lorenz curves for four different economies. For which economy would the lowest 20 percent of families receive the smallest share of total income?

Question

Quizplus · Accepted Answer

In economy D, the Lorenz curve is the farthest away from the line of equality (the dotted diagonal line), indicating a higher level of income inequality. Therefore, the lowest 20 percent of families would receive the smallest share of total income in economy D.

Figure 333 Illustrates Lorenz Curves for Four Different Economies