Multiple Choice

-The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is correct?
A) The Lorenz curve for wealth shows that wealth is distributed less equally because wealth does not include human capital.
B) The Lorenz curve for income shows that income is distributed less equally because income does not include income from stocks and bonds.
C) The Lorenz curves show wealth is greater than income.
D) The Lorenz curves show income is greater than wealth.
Correct Answer:
Verified
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