The figure above shows Lorenz curves for a nation.
-Based on the figure above,if the poorest 20 percent group of households increased the share of the nation's income they receive,then

Question

Quizplus · Accepted Answer

The Lorenz curve shows the distribution of income in a nation. If the poorest 20% group of households increases their share of income, it means they are getting a higher proportion of the total income of the nation. This would cause a shift in the Lorenz curve towards the line of equality, which represents perfect income equality where everyone receives an equal share of the nation's income. Therefore, choice C is the correct answer. Choice A is incorrect because there is no movement up along the Lorenz curve, but rather a shift. Choice B is incorrect because there is no reason for the poorer households to receive a smaller share of the income. Choice D is incorrect because a higher share for the poorer households causes a shift towards the line of equality, rather than a shift away. Choice E is incorrect because only answer C is correct.

The Figure Above Shows Lorenz Curves for a Nation