The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-If 50 percent of the population receives 20 percent of the total income, it can be represented on the Lorenz curve by:

Question

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1
 
-If 50 percent of the population receives 20 percent of the total income, it can be represented on the Lorenz curve by:

Quizplus · Accepted Answer

The Lorenz curve represents the distribution of income among the population. The line of income equality represents a situation where everyone has an equal share of income. If 50 percent of the population receives only 20 percent of the total income, it means that income is not equally distributed. Therefore, the point representing this situation will be below the line of income equality, indicating income inequality. Option A correctly represents this situation.

The Figure Given Below Represents an Imperfectly Competitive Resource Market