F.5_ECON_Book 3 Chapter 18_I22_23

Refer to the following Lorenz curves of Country A.

Which of the following is true?

• A.  Country A’s income distribution has become more uneven.

• B.  Country A’s Gini coefficient has decreased.

• C.  Country A’s living standard has improved.

• D.  Country A’s low-income group earns less income.

Which of the following is correct?

• A.  Country B’s standard of living is higher than Country A.

• B.  Country A’s income distribution is more even than Country B.

• C.  Country B’s Gini coefficient is greater than 1.

• D.  Country A’s GDP is greater than Country B.

When the Gini coefficient increases,

• A.  the Lorenz curve is closer to the 45-degree line.

• B.  the problem of income inequality becomes more serious.

• C.  income distribution is more unequal than other countries.

• D.  the cost of living increases.

When the problem of income inequality worsens,

• A.  the Gini coefficient increases.

• B.  the Lorenz curve is closer to the 45-degree line.

• C.  the low-income group becomes worse off.

• D.  the high-income group becomes better off.

The Gini coefficient increased from 0.1 to 0.2. This means that

• A.  the income of high-income groups doubled.

• B.  the income of low-income groups was 0.2 times that of the high-income groups.

• C.  income distribution was more even.

• D.  the Lorenz curve was further away from the 45-degree line.