Use the following to answer question(s): Income Distribution

-(Exhibit: Income Distribution) Curve _______ indicates that the lowest ________ percent of families would receive _______ of the income.
A) B; 40; 40
B) A; 60; 20
C) A; 40; 40
D) B; 80; 80

Question

Use the following to answer question(s): Income Distribution
 
-(Exhibit: Income Distribution) Curve _______ indicates that the lowest ________ percent of families would receive _______ of the income.
A) B; 40; 40 
B) A; 60; 20 
C) A; 40; 40 
D) B; 80; 80

Quizplus · Accepted Answer

Curve A, according to the exhibit, represents the income distribution for the entire population. It is plotted against the cumulative percentage of families on the x-axis and the cumulative percentage of income on the y-axis. Thus, curve A indicates that the lowest 40% of families would receive 40% of the income. Curve B represents the income distribution for the bottom 60% of the population, and it shows that the lowest 20% of families would receive 40% of the income. Therefore, Curve C is not valid as it doesn't exist in the exhibit. Curve D indicates that the lowest 80% of families would receive 80% of the income, which is not possible since it is not a possible outcome of income distribution.

Use the Following to Answer Question(s): Income Distribution