A Lorenz curve shows the:
a. number of people in an economy living below the poverty line.
b. percentage of children in an economy who are not receiving adequate nutrition.
c. percentage of the economy's population benefiting from government spending programs.
d. percentage of an economy's total income each part of the population receives.
e. percentage of the population whose income is dependent on sales to foreign countries.
Question 2
If top government officials claim that more people are working now than ever before, then which of the following is true?
a. The unemployment rate is lower now than ever before.
b. The number of people unemployed is lower now than ever before.
c. The employment rate is higher now than ever before.
d. The number of people in the labor force is higher now than ever before.
e. The number of people employed is higher now than ever before.
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Construct a Lorenz curve that shows income distribution in this society.