Question 1
Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Refer to Figure 18.1. Suppose that the Lorenz curve were the same as the 45-degree line OB. This would mean that
◦ the distribution of income is perfectly equitable.
◦ the distribution of income is completely inequitable.
◦ only one family earned all the income.
◦ the distribution of income is equal.
Question 2
Refer to the information provided in Figure 18.1 below to answer the question(s) that follow.
Refer to Figure 18.1. Suppose that the Lorenz curve ran along the horizontal axis to 100% of families, then became vertical to 100% of income. This would mean that
◦ the distribution of income is perfectly equitable.
◦ the distribution of income is completely inequitable.
◦ only one family earned all the income.
◦ the distribution of income is equal.
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