10 explain why a lorenz curve can never lie to the

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10) Explain why a Lorenz curve can never lie to the left or above the 45 degree line.
11) Using a Lorenz curve diagram, explain how to calculate the Gini coefficient.
12) Kuznets’ inverted-U hypothesis
13) The functional distribution of income refers to the distribution of income between
14) The poverty gap is the (a) absolute number of people below the international poverty line. (b) percentage of the population below the international poverty line. (c) consumption (measured in dollars) necessary to bring everyone below the poverty line up to the line. (d) percentage of a country’s total consumption necessary to bring everyone in the country below the poverty line up to the line. Answer: D

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