Suppose all Canadians earned equal incomes. In this case, Canada's Lorenz curve would be
A) non- existent.
B) above the diagonal line.
C) below the diagonal line.
D) coincident with the horizontal axis.
E) the diagonal line.

Question

Quizplus · Accepted Answer

If all Canadians earned equal incomes, then the distribution of income would be perfectly equal. This means that each percentile of the population would earn an equal share of total income, resulting in a straight line from the bottom-left corner to the top-right corner of the Lorenz curve graph, creating a diagonal line.

Suppose All Canadians Earned Equal Incomes