Exhibit 12-3 Lorenz curve for an economy
-If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:

Question

Exhibit 12-3 Lorenz curve for an economy 
-If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Exhibit 12-3 will:

Quizplus · Accepted Answer

When an economy's distribution of income becomes more equal, the Lorenz curve moves closer to the 45° line. This is because a more equal distribution of income means that each quintile or percentile of the population receives a more similar share of the total income, so the income distribution is less concentrated in the hands of a few individuals or groups. As a result, the Lorenz curve moves closer to the line of perfect equality, which represents a situation in which every person receives an equal share of the income.

Exhibit 12-3 Lorenz Curve for an Economy