Limitation in Lorenz curve

A Lorenz Curve cannot be used to demonstrate scientifically how the: (w) income is distributed among members of society. (x) wealth is distributed in between members of society. (y) taxes alter the distribution of income. (z) income must be distributed fairly.

#### Related Questions in Microeconomics

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A cartel is: (w) any large multinational corporation like OPEC. (x) a group of oligopolists practicing conscious parallelism of action. (y) a group of firms which practices joint profit maximization. (z) a multinational firm along with government subs

• ##### Q :Capital Goods In the above diagram, the

In the above diagram, the elimination of discrimination is best represented by

• ##### Q :Wage rate in equilibrium for monopsony

Marginal revenue product of the labor surpasses the: (i) Additional revenue generated by each extra unit of labor. (ii) Value of marginal product of labor merely for the competitive sellers of output. (iii) Average fixed cost for natural monopoly. (iv

• ##### Q :Depending LEAST interest rate Into the

Into the long run, interest rates depend LEAST upon the: (1) premiums needed to induce savers to delay consumption. (2) premiums necessary to induce wealth holders to sacrifice liquidity. (3) productivity of new capital. (4) demands and supplies of lo

• ##### Q :Problem on Equilibrium price What

What happens to equilibrium price if increase in demand is equivalent to increase in supply?

Answer: In case of equivalent increase in demand and supply the equilib

• ##### Q :Increased value of product due to time

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Can s

• ##### Q :Define feature of perfectly inelastic

A perfectly inelastic demand curve: (w) is an imaginary mathematical construct, and does not exist within reality. (x) corresponds to a perfectly horizontal line. (y) represents a good which absorbs only a small portion of consumers’ budgets. (z

• ##### Q :Comparative static model and general

Compare and contrast Comparative static model and general equilibrium models using one example of each model in a 2 page essay. Specify the properties of each model. What are the relative strengths and weaknesses of each and every model?

• ##### Q :Negative relationship in Law of Demand

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• ##### Q :Resource market in equilibrium When the

When the resource market demonstrated in this figure is into equilibrium: (1) owners of these resources currently receive no economic rents. (2) economic rent is specified from trapezoid Oade. (3) the rectangle Obde measures consumer surplus by the fi