Figure 12.5 Figure 12.5 shows the Lorenz curve for a hypothetical country.
-Refer to Figure 12.5.The middle 40 per cent of households

Question

Figure 12.5  Figure 12.5 shows the Lorenz curve for a hypothetical country.
-Refer to Figure 12.5.The middle 40 per cent of households

Quizplus · Accepted Answer

The Lorenz curve shows the cumulative share of income earned by different percentile groups of households in the society. In this hypothetical country, if we draw a vertical line through the 40th percentile on the horizontal axis, we can see that the curve intersects with the vertical axis at around 40%, indicating that the middle 40% of households earn 40% of the society's total income. Therefore, the correct answer is B.

Figure 125 Figure 12