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If the Income Distribution Is More Unequal Than the Wealth

Question 3

Multiple Choice

If the income distribution is more unequal than the wealth distribution, then the


A) Lorenz curve for income will be further away from the line of equality than the Lorenz curve for wealth.
B) Lorenz curve for wealth will lie above the Lorenz curve for income.
C) Lorenz curve for wealth will be further away from the line of equality than the Lorenz curve for income.
D) government has imposed a higher tax rate on income.
E) it is not possible to draw the Lorenz curves for wealth and income in the same figure.

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