Suppose all Canadians earned equal incomes.In this case,Canada's Lorenz curve would be
A)the diagonal line.
B)above the diagonal line.
C)non- existent.
D)below the diagonal line.
E)coincident with the horizontal axis.

Question

Quizplus · Accepted Answer

If all Canadians earned equal incomes, then the distribution of income would be perfectly equal. In this case, the Lorenz curve would be a diagonal line, representing a situation where each quintile of the population receives an equal share of the total income.

Suppose All Canadians Earned Equal Incomes