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Consider the Area Between the Line of Perfect Income Equality

Question 52

Multiple Choice

Consider the area between the line of perfect income equality and the Lorenz curve. In country A this area is larger than in country B. It follows that


A) the bottom 20 percent income group receives a lower percentage of total income in country A than in country B.
B) the bottom 20 percent income group receives a lower percentage of total income in country B than in county A.
C) the top 20 percent income group receives a higher percentage of total income in country B than in country A.
D) the top 20 percent income group receives a higher percentage of total income in country A than in country B.
E) none of the above

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