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Reference: 1918 \quad \quad \quad \quad \quad

Question 2

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Reference: 1918 \quad \quad \quad \quad \quad \quad \quad  Income Distribution in the United States  \text { Income Distribution in the United States }  Quintile  1968 Income  Share  1997 Income Share  Lowest 20% 4.20%3.60% Second 20% 11.18.9 Third 20% 17.515 Fourth 20% 24.523.2 Highest 20% 42.849.4 Top 5% 16.621.7\begin{array} { | l | c | c | } \hline \text { Quintile } & \begin{array} { c } \text { 1968 Income } \\\text { Share }\end{array} & \text { 1997 Income Share } \\\hline \text { Lowest 20\% } & 4.20 \% & 3.60 \% \\\hline \text { Second 20\% } & 11.1 & 8.9 \\\hline \text { Third 20\% } & 17.5 & 15 \\\hline \text { Fourth 20\% } & 24.5 & 23.2 \\\hline \text { Highest 20\% } & 42.8 & 49.4 \\\hline \text { Top 5\% } & 16.6 & 21.7\\\hline\end{array}
-(Exhibit: Income Distribution in the United States) Which of the following statements is true?


A) For 1968, a point on the Lorenz curve would show the lowest 40 percent of the families receiving 15.3 percent of the income.
B) For 1997, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 49.4 percent of the income.
C) For 1968, a point on the Lorenz curve would show the lowest 80 percent of the families receiving 24.5 percent of the income.
D) For 1997, the lowest 40 percent of the families received 8.9 percent of the income.

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