If every Canadian household received the same earned income, Canada's Lorenz curve would be

a.the horizontal axis.

b.a straight line from the origin

c.very bowed from the diagonal.

d.a rectangular hyperbola.

Some economists criticize the Lorenz curve because it

a.uses after-tax income when pre-tax income is more appropriate.

b.does not account for income in kind, including "free" health care and education.

c.includes too many things in measuring income, such as food stamps, housing aid, and other government programs.

d.measures unreported income earned in the underground economy

All of the following are criticisms of the Lorenz curve EXCEPT:

a.The Lorenz curve does not include in-kind transfers

b.The Lorenz curve does not account for differences in education levels.

c.The Lorenz curve does not account for age differences

d.The Lorenz curve does not account for differences in the sizes of families.

Compared to the distribution of money income in Canada, the distribution of wealth is

a.much less equal.

b.about the same.

c.much more equal.

d.a little more equal.

Inclusion of workers' claims on private and public pension plans as in the wealth of Canadians would

a.indicate that households at the lower end of the income range have higher incomes than Statistics Canada figures show.

b.not make a difference in the overall measures of the wealth distribution

c.indicate that the middle class owns considerably greater wealth than Statistics Canada figures indicate.

d.indicate that the rich are even richer than Statistics Canada figures show.

What percentage of families in the top fifth of families by wealth owned a home in 2005?

a.80

b.95

c.50

d.67

The earnings of most workers

a.increase steadily with age until retirement

b.increase with age until around age 40 due to increased experience, training, and hours worked.

c.increase with age until around age 60 due to increased experience, training, and hours worked, then level off as hours worked levels off.

d.increase with age until around age 50 due to increased experience and hours worked