The _______ a Lorenz curve lies to (from) the 45-degree line, the _______ the distribution of income.
A) further; more equal
B) closer; less equal
C) further; more unequal
D) closer; better as far as economists are concerned.

Question

Quizplus · Accepted Answer

The further a Lorenz curve lies from the 45-degree line, the more unequal the distribution of income. This means that choice C, which states that the curve lies further from the line and the distribution is more unequal, is correct. Choices A and B are both incorrect because they reverse the relationship between the distance from the line and the equality of the distribution. Choice D is also incorrect because it does not accurately describe the relationship between the Lorenz curve and the distribution of income.

The _______ a Lorenz Curve Lies to (From) the 45-Degree