-The above figure shows the Lorenz curve for wealth for the nation of Rusha. The wealthiest 40 per cent of the population own what percentage of wealth?

Question

Quizplus · Accepted Answer

The Lorenz curve is a graphical representation of wealth or income distribution. The point at 40% on the horizontal axis represents the bottom 40% of the population. To find the percentage of wealth they own, you trace upwards from this point to the curve and then left to the vertical axis. If the curve is not provided, the typical interpretation for a Lorenz curve question like this, based on common shapes of Lorenz curves, would suggest that the wealthiest 40% own a larger share of wealth, often more than their proportion of the population. Without the specific curve details, the most likely scenario given typical distributions would be that the wealthiest 40% own a significant portion of the wealth, but without seeing the curve, the exact distribution cannot be determined. However, the question seems to imply understanding of a typical Lorenz curve where wealth concentration increases with the wealthier segments, making A (60 per cent) a plausible choice for the wealth owned by the wealthiest 40%, assuming a common distribution shape.

-The Above Figure Shows the Lorenz Curve for Wealth for the Nation