Income inequalities are often shown on a ?
Correct answer: D. Lorenz curve
- A. production possibility curve
- B. marginal inequality curve
- C. sen curve
- D. Lorenz curve
Explanation
A Lorenz curve plots the cumulative share of income received by cumulative population groups and reveals the degree of inequality. The farther it lies from the line of perfect equality, the greater the inequality.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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