Figure 19-1
-Refer to Figure 19-1. Based on the Lorenz curves, which of the two countries do you believe fits better the definition of development?
A) Cote d'Ivoire, because its low income households have a higher per capita real GDP than low income households in Guinea.
B) Guinea, because there are more high-income households in Guinea than in Cote d'Ivoire.
C) Cote d'Ivoire, because its income distribution is comparatively more equal than Guinea's which suggests that Cote d'Ivoire is coming closer to generating widely shared gains in per capita real GDP.
D) Guinea, because its income distribution is comparatively more equal than Cote d'Ivoire's which suggests that Guinea is coming closer to generating widely shared gains in per capita real GDP.

Question

Figure 19-1 
-Refer to Figure 19-1. Based on the Lorenz curves, which of the two countries do you believe fits better the definition of development?
A) Cote d'Ivoire, because its low income households have a higher per capita real GDP than low income households in Guinea. 
B) Guinea, because there are more high-income households in Guinea than in Cote d'Ivoire. 
C) Cote d'Ivoire, because its income distribution is comparatively more equal than Guinea's which suggests that Cote d'Ivoire is coming closer to generating widely shared gains in per capita real GDP. 
D) Guinea, because its income distribution is comparatively more equal than Cote d'Ivoire's which suggests that Guinea is coming closer to generating widely shared gains in per capita real GDP.

Quizplus · Accepted Answer

The Lorenz curve for Cote d'Ivoire is closer to the line of perfect equality, indicating a more equal income distribution compared to Guinea. This suggests that Cote d'Ivoire is making progress towards generating widely shared gains in per capita real GDP, which fits better with the definition of development.

Figure 19-1 -Refer to Figure 19-1. Based on the Lorenz Curves, Which