Use the figure below to answer the following questions. Figure 18.1.2
-Consider the Lorenz curves in Figure 18.1.2.Which point indicates that the poorest 20 percent of families earn 9 percent of the income?

Question

Use the figure below to answer the following questions.  Figure 18.1.2
-Consider the Lorenz curves in Figure 18.1.2.Which point indicates that the poorest 20 percent of families earn 9 percent of the income?

Quizplus · Accepted Answer

Point a on the Lorenz curve typically represents the share of total income earned by the bottom portion of the population. If point a indicates that the poorest 20% of families earn 9% of the income, it is showing the degree of income inequality, where a smaller percentage of total income is earned by the bottom 20% compared to a perfectly equal distribution.

Use the Figure Below to Answer the Following Questions