Figure 18-5

Figure 18-5 shows the Lorenz curve for a hypothetical country.
-Refer to Figure 18-5.The middle 20 percent of households
A)earn 20 percent of the society's total income.
B)earn 36 percent of the society's total income.
C)earn 48 percent of the society's total income.
D)earn 50 percent of the society's total income.

Question

Figure 18-5
  
Figure 18-5 shows the Lorenz curve for a hypothetical country.
-Refer to Figure 18-5.The middle 20 percent of households
A)earn 20 percent of the society's total income. 
B)earn 36 percent of the society's total income. 
C)earn 48 percent of the society's total income. 
D)earn 50 percent of the society's total income.

Quizplus · Accepted Answer

The middle 20 percent of households typically earn around 20 percent of the society's total income, as income distribution is often divided into quintiles where each quintile represents 20 percent of the population.

Figure 18-5 Figure 18-5 Shows the Lorenz Curve for a Hypothetical Country