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Using the Lorenz Curve, the Degree of Income Inequality Is

Question 1

Multiple Choice

Using the Lorenz curve, the degree of income inequality is measured by the:


A) line connecting all points for which a given percentage of families receives exactly that cumulative percentage of income.
B) distance of the Lorenz curve from the line of perfect equality.
C) flat diagonal line that applies to a perfectly elastic demand curve.
D) number of times the Lorenz curve crosses the line of perfect equality.

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