SOLVED

81) In the figure above, the second poorest 20 percent of households receive ________ of total income. A) 5 percent B) 10 percent C) 15 percent D) 20 percent 82) In the figure above, the second richest 20 percent of households receive ________ of total income. A) 55 percent B) 35 percent C) 25 percent D) 45 percent 83) In the figure above, if income were distributed equally across all households, the richest 20 percent of households would receive ________ of total income. A) 45 percent B) 25 percent C) 20 percent D) 15 percent 84) In the figure above, if income were distributed equally across all households, the poorest 10 percent of households would receive ________ of total income. A) 5 percent B) 10 percent C) 15 percent D) 20 percent 85) The figure shows two Lorenz curves. Suppose both Lorenz curves measure income. Lorenz curve A shows ________ Lorenz curve B. A) income is more equally distributed than the income shown in B) income is less equally distributed than the income shown in C) the first quintile earns less income than the first quintile earned in D) the fifth quintile earns more income than the fifth quintile earned in 86) The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is A) greater along Lorenz curve A. B) greater along Lorenz curve B. C) distributed more equally along Lorenz curve A. D) distributed more equally along Lorenz curve B. 87) The above figure shows two Lorenz curves. Lorenz curve A shows the distribution of income and Lorenz curve B shows the distribution of wealth. Which statement below is correct? A) The Lorenz curve for wealth shows that wealth is distributed less equally because wealth does not include human capital. B) The Lorenz curve for income shows that income is distributed less equally because income does not include income from stocks and bonds. C) The Lorenz curves show wealth is greater than income. D) The Lorenz curves show income is greater than wealth. Â Â 88) The Lorenz curves in the above figure imply that A) income is distributed more unequally than wealth. B) wealth is distributed more unequally than income. C) both wealth and income are distributed equally. D) both wealth and income are distributed at the same level of inequality. 89) Which of the following statements is TRUE? A) Both wealth and income measure variables over a period of time. B) Wealth measures a variable at a point in time and income measures a variable over a period of time. C) Wealth measures a variable over a period of time, and income measures a variable at a point in time. D) Both wealth and income measure variables at a point in time. 90) Wealth differs from income in that A) income measures a variable at a point in time and wealth measures a variable over a period of time. B) income is what you earn and wealth is what you own. C) income is what you own and wealth is what you earn. D) wealth can be measured in dollars and income cannot.