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 the Gini coefficient for the United States is 0.47 and that for India is 0.36, which of the following statements is true?
A) The U.S. being an industrialized nation has a lower income inequality than India.
B) The Lorenz curve for the U.S. lies above the Lorenz curve for India.
C) India, in spite of being a developing nation, has lesser income inequality than the U.S.
D) The Lorenz curve for India would coincide with the line of perfect equality.
E) The distribution of income in both the economies are equal.
Correct Answer:
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