refer to the diagram

-An increase in earnings inequality would be shown by a:

Question

refer to the diagram

-An increase in earnings inequality would be shown by a:

Quizplus · Accepted Answer

The diagram shows a Lorenz curve which illustrates the distribution of income in an economy. Line A represents the current distribution of income, and line B represents a hypothetical distribution where earnings inequality has increased. A shift from line A to line B would indicate an increase in earnings inequality, making A the correct choice. Choices B, C, and D are incorrect because they would not indicate an increase in earnings inequality but rather a shift in the distribution for other reasons such as economic growth or government policy changes.

Refer to the Diagram