Use the figure below to answer the following questions.

Figure 19.1.2
-Consider the Lorenz curves in Figure 19.1.2. Which point indicates that the poorest 20 percent of families earn 9 percent of the income?

Question

Use the figure below to answer the following questions.
  
Figure 19.1.2
-Consider the Lorenz curves in Figure 19.1.2. Which point indicates that the poorest 20 percent of families earn 9 percent of the income?

Quizplus · Accepted Answer

The Lorenz curve plots the cumulative percentage of total income received against the cumulative percentage of recipients, starting with the poorest. Point 'a' on the Lorenz curve would represent the point where the poorest 20% of families earn 9% of the income.

Use the Figure Below to Answer the Following Questions