Author Question: When the Lorenz curve lies above the diagonal, a. the poorest 20 percent of the population receive ... (Read 60 times)

LaDunn · **on:** Jun 30, 2018

When the Lorenz curve lies above the diagonal,
a. the poorest 20 percent of the population receive more than 20 percent of income.
b. the richest 20 percent of the population receive more than 20 percent of income.
c. everyone receives the same income.
d. the country's income has been rising over time.
e. it is wrong since it is impossible for the graph to look like this.

Question 2

Problems with the federal government budget process include:
a. tough choices to be made by Congress each year on which entitlement programs will receive full support.
b. the constitutional requirement of Congress to balance the budget on an annual basis.
c. an overly detailed budget that allows Congress to reward friends, thereby discouraging restraint on spending.
d. a short review period for Congress that results in poor choices in funding programs.
e. Congress having too much control over the budgetary process.