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In an Economy Where One Person Receives All the Income

Question 112

Multiple Choice

In an economy where one person receives all the income, the Lorenz curve is


A) the two sides of the right angle triangle
B) the diagonal
C) a U-shaped curve that lies below the diagonal
D) a U-shaped curve that lies above the diagonal
E) a downward sloping line from 100 percent of income (on the vertical axis) to 100 percent of population (on the horizontal axis)

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