Author Question: The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz ... (Read 403 times)

luminitza · **on:** Jun 29, 2018

The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is CORRECT?

A) The Lorenz curve for wealth shows that wealth is distributed less equally because wealth does not include human capital.
B) The Lorenz curve for income shows that income is distributed less equally because income does not include income from stocks and bonds.
C) The Lorenz curves show wealth is greater than income.
D) The Lorenz curves show income is greater than wealth.

Question 2

The cookie industry in Eatsweetland consists of 15 firms. The industry sales are 80 million per month. The sales of the largest 5 firms are shown in the table below. The rest 10 firms have sales of 3 million each.

What is the four-firm concentration ratio in Eatsweetland's cookie industry? A) 63 percent
B) 44 percent
C) 87 percent
D) 56 percent