Figure 33.2 illustrates Lorenz curves for four different economies.For which economy would the lowest 20 percent of families receive the smallest share of total income?

Question

Quizplus · Accepted Answer

In economy A, the Lorenz curve is closest to the diagonal line which indicates a more equal distribution of income. Therefore, the lowest 20 percent of families would receive a relatively larger share of total income compared to the other economies.

Figure 332 Illustrates Lorenz Curves for Four Different Economies