Question : 21) In the figure above, the nation with the most : 1241414

21) In the figure above, the nation with the most equal distribution of income is nation

A) A.

B) B.

C) C.

D) The distribution of income is the same in all three nations because their Lorenz curves can be plotted on the same diagram.

E) It is impossible to determine with the information given.

22) In the figure above, the nation with the least equal distribution of income is nation

A) A.

B) B.

C) C.

D) The distribution of income is the same in all three nations because their Lorenz curves can be plotted on the same diagram.

E) It is impossible to determine with the information given.

23) In the figure above, the nation with the highest average income is nation

A) A.

B) B.

C) C.

D) The average income is the same in all three nations because their Lorenz curves can be plotted on the same diagram.

E) It is impossible to determine with the information given.

24) In the United States, it is the case that

A) both income and wealth are equally distributed.

B) wealth is equally distributed but income is distributed unequally.

C) income is equally distributed but wealth is distributed unequally.

D) both income and wealth are unequally distributed and wealth is distributed more unequally than is income.

E) both income and wealth are unequally distributed and income is distributed more unequally than is wealth.

25) Comparing the wealth and income distribution in the United States, we see that

A) wealth is distributed less equally than income.

B) because wealth and income are different terms for the same thing, the distributions are the same.

C) income is distributed less equally than wealth.

D) we cannot compare the distribution of wealth and income.

E) None of the above answers is correct.

26) In the United States, the

A) distribution of income has become more equal since 1970.

B) Lorenz curve for income and the Lorenz curve for wealth are equally close to the line of equality.

C) Lorenz curve for income is closer to the line of equality than is the Lorenz curve for wealth.

D) Lorenz curve for wealth is closer to the line of equality than is the Lorenz curve for income.

E) None of the above answers is correct.

27) Which of the following statements is correct?

A) Wealth inequality in the United States is greater than income inequality.

B) Income inequality in the United States is greater than wealth inequality.

C) Income includes all the things owned by a household at a certain point in time.

D) The top fifth of households have a greater share of the nation’s income than the nation’s wealth.

E) The fraction of wealth owned by the bottom 20 percent of households is larger than the fraction income earned by the bottom 20 percent of households.

28) Looking at the income distribution in the United States since 1970, we see that

A) only the lowest 20 percent and highest 20 percent increased their shares of income.

B) the lower 50 percent increased its share of income and the upper 50 percent stayed the same.

C) the highest 20 percent increased its share of income.

D) all the 20 percent groups increased their shares of income.

E) the lower 50 percent increased its share of income and the upper 50 percent decreased its share of income.

29) In the United States, since 1970 the share of income received by the richest 20 percent of households has ________ and the share received by the other 80 percent of households has ________.

A) increased; increased

B) increased; decreased

C) decreased; increased

D) not changed; not changed

E) increased; not changed

30) In the United States since 1970 income has become ________ equally distributed and since the 1970s economic mobility among income groups has ________.

A) more; increased

B) more; decreased

C) less; increased

D) less; decreased

E) None of the above answers is correct because economic mobility among income groups cannot be measured.