The figure given below shows the Lorenz curves of two countries (Country A and Country B). Figure 19.2
Total income (cumulative percentage) Total population (cumuative percentage)
-In Figure 19.2,the richest 20 percent of the population in Country B receive:

Question

The figure given below shows the Lorenz curves of two countries (Country A and Country B). Figure 19.2
Total income (cumulative percentage)  Total population (cumuative percentage)
-In Figure 19.2,the richest 20 percent of the population in Country B receive:

Quizplus · Accepted Answer

The Lorenz curve measures the distribution of income in a population. The x-axis represents the cumulative percentage of the total population, while the y-axis represents the cumulative percentage of the total income. For example, if the Lorenz curve shows that the bottom 20% of the population holds only 5% of the income, this means that if you add up the incomes of the bottom 20% of the people in the population, it only amounts to 5% of the total income in that society.

Looking at Figure 19.2, we can see that at the point where the Lorenz curve for Country B intersects the 20% mark on the x-axis, it intersects at a point on the y-axis that is around 60%. This means that the top 20% of the population in Country B holds around 60% of the total income, making choice B the correct answer.

The Figure Given Below Shows the Lorenz Curves of Two