7. In a Lorenz diagram for income, the line of equality shows

a. the most equitable income distribution.

b. how unequally incomes are distributed.

c. how much redistribution occurs.

d. the income distribution if everyone in the population received the same income.

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Explaining Income Inequality

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Raushan RajLv8

1 Nov 2020

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Related questions

If a nation's Lorenz curve lies on the 45-degree line of income equality:

A. proportionately more of the nation's income is received by the lowest 20% of families than by the highest 20%.

B. income is unequally distributed.

C. proportionately more of the nation's income is received by the highest 20% of families than by the lowest 20%.

D. the income received by each 20% of families is 20% of the total income.

crimsonwolf449

13. The closer the Lorenz curve for income is to the line of equality,

a. the larger is the nation’s total income.

b. the more equally are incomes distributed.

c. the smaller is the nation’s total income.

d. the larger the fraction of the nation’s income received by the richest families.

Suppose there are two possible income distributions in a society often people. In the first distribution, nine people have incomes of$30,000 and one person has an income of $10,000. In the second distribution, all ten people have incomes of $25,000.

a. If the society had the first income distribution, what would be the utilitarian argument for redistributing income?

b. Which income distribution would Rawls consider more equitable? Explain.

c. Which income distribution would Nozick consider more equitable? Explain.