Question

From the highest to the lowest, the percentage of revenues earned by businesses in the United States is represented by which of the following?

a) Lorenz Curve
b) Engel Curve
c) Laffer Curve
d) Gini Coefficient

Answer 1

The percentage of revenues earned by businesses in the United States is represented by the Lorenz Curve, which shows income distribution and inequality. The income distribution became more unequal over time.

Step-by-step explanation:

The percentage of revenues earned by businesses in the United States is represented by the Lorenz Curve.

A Lorenz curve is a graph that shows the cumulative shares of income received by everyone up to a certain quintile. It helps visualize income distribution and inequality.

In the case of the United States, the Lorenz curve reveals that income distribution became more unequal over time, with the income distribution in 1980 being closer to the perfect equality line than in 2011.