A Lorenz curve measures:

income equality.
the relationship between income and the amount people want to buy.
the relationship between inputs and outputs.
economic efficiency.


 Answer this question using these income data of ten households:

Household
Income
Household
Income
Adams
$400,000
Ford
$55,000
Benson
$100,000
Grey
$90,000
Carter
$20,000
Hoover
$20,000
Davis
$30,000
Ingersol
$70,000
Edwards
$15,000
Johnson
$200,000

The middle quintile (1/5) receives what percentage of total income?

4% 7% 8.5% 12.5%


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