Use the figure below to answer the following questions.

Figure 19.1.2
-Which point in Figure 19.1.2 indicates that the richest 20 percent of families earn 40 percent of the income?

Question

Use the figure below to answer the following questions.
  
Figure 19.1.2
-Which point in Figure 19.1.2 indicates that the richest 20 percent of families earn 40 percent of the income?

Quizplus · Accepted Answer

Point c on a Lorenz curve typically represents the cumulative percentage of income earned by the cumulative percentage of families. If the richest 20 percent earn 40 percent of the income, point c would be the one that corresponds to these values on the curve.

Use the Figure Below to Answer the Following Questions