Figure 15-2
If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Figure 15-2 will

Question

Figure 15-2 
If this economy's distribution of income becomes more equal, then the Lorenz curve shown in Figure 15-2 will

Quizplus · Accepted Answer

When an economy's distribution of income becomes more equal, the Lorenz curve will move closer to the 45° line because this represents perfect equality. A more equal distribution of income means that a smaller percentage of the total income is earned by the higher-income groups, reducing the inequality gap. As a result, the curve will shift leftward and closer to the diagonal line of perfect equality.

Figure 15-2 If This Economy's Distribution of Income Becomes More Equal, Then