? canvas.highline.edu Quiz: Exam 2 Economics Final DI Question 31 2.5 pts Which

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? canvas.highline.edu Quiz: Exam 2 Economics Final DI Question 31 2.5 pts Which of the following correctly describes the Lorenz curve? OThe Lorenz curve shows that the increasing income inequality in the U.S. society is actually good for the economy. The Lorenz curve shows the growth rate in real median family income over time. O The Lorenz curve shows the cumulative distribution of family income, ranked from the poorest to the richest families, and compares that curve with the straight line indicating perfectly equal income distribution. O The Lorenz curve shows the cumulative distribution of family income, ranked from the richest to the poorest families, and compares that curve with the ideal of having all income go to the richest 5 percent of society D Question 32 2.5 pts A graph that shows the cumulative shares of income received by a family is a: O Distribution curve. O Lorenz curve. O Ricardian curve. Quintlile curve.

Explanation / Answer

Lorenz curve shows the cumulative distribution of incomes of various percentage of families all in all.

Therefore (c) The Lorenz curve shows the cumulative distribution of family incomes from poor to richest families comparing the curve with straight line assuming equal distribution is the answer.

Lorenz curve shows the cumulative distribution of income is the answer.

Therefore (b) Lorenz curve is the answer.

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