Question 28 25 pts Exhibit 122 Lorenz curve 100 80 Cumulativ

Question 28 2.5 pts Exhibit 12-2 Lorenz curve 100 80 Cumulative percentage of money income 60 20 0 20 40 60 80 100 Cumulative percentage of families As shown in Exhibit 12-2, 60 percent of families earned a cumulative share of aboutof income. O 5 percent 15 percent O 30 percent 50 percent

Solution

This curve is a Lorenz curve and it measures the income inequality of the country. Cumulative percentage of money income is represented on vertical axis and cumulative family is shown on the horizontal axis.

Hence it can be said that 60 percent of families earned a cumulative share of about 50 percent of income.

This has been found corresponding point D on the vertical axis.

Hence option fourth is the correct answer.