Economics for Today 9th Edition by Irvin Tucker

Exercise 16

MICROECONOMICS POLICY ISSUES
This road map feature helps you tie together material in the part as you travel the Economic Way of Thinking Highway. The following are review questions listed by chapter from the previous part. The key concept in each question is given for emphasis, and each question or set of questions concludes with an interactive game to reinforce the concepts. Visit cengagebrain.com to purchase the MindTap product where you can select a chapter and play the visual causation chain game designed to make learning fun. The correct answers to the multiple choice questions are given in Appendix C on the instructor's resource site.
Key Concept: Lorenz Curve
When the Lorenz curve lies above the diagonal,
A) the poorest 20 percent of the population receive more than 20 percent of income.
B) the richest 20 percent of the population receive more than 20 percent of income.
C) everyone receives the same income.
D) the curve is wrong because the curve is drawn below the diagonal.