Which of the following statements is true ?

Question

Quizplus · Accepted Answer

The Lorenz curve is a graphical representation of the distribution of income or wealth in an economy. It shows the percentage of total income earned by a given percentage of households, ranked by income. The closer the Lorenz curve is to the 45-degree line, the more equal the income distribution is. Therefore, option C is true, as the Lorenz curve does indicate the degree of income inequality in an economy. Option A is false, as income distribution in the United States has not always been more unequal since 1929. Option B is also false, as the Lorenz curve measures income inequality, not discrimination. Option D is incorrect, as the richest 5% of Americans do not earn half of the nation's income, although they do earn a significant share.

Which of the Following Statements Is True