DQuestion 27 25 pts Exhibit 122 Lorenz curve 100 80 Cumulati

DQuestion 27 2.5 pts Exhibit 12-2 Lorenz curve 100 80 Cumulative percentage of money income 60 40 20 40 60 80 100 Cumulative percentage of families As shown in Exhibit 12-2, the perfect equality line is drawn between points: O A and B. O B and D. O A and C along the straight line. A and C along the curve.

Solution

The perfect equality line is the 45 degree line in the box which shows the income distribution if everyone received the same income. Thus the perfect equality line is drawn between the points A and C along the straight line.