An economy's income distribution is represented by a Lorenz curve that passes through the points (0,0), (10,0), (90,76), and (100,100), where the first coordinate is the cumulative percentage of the population and the second is the cumulative percentage of total income. Based on this data, which statement correctly compares the income share of the middle 80% of the population (from the 10th to the 90th percentile) to the income share of the wealthiest 10% of the population?

Evaluating a Policy Claim with Lorenz Curve Data

Consider an economy where the income distribution is represented by a Lorenz curve passing through the points (0,0), (10,0), (90,76), and (100,100), where coordinates represent (cumulative % of population, cumulative % of income). In this economy, the income share of the wealthiest 10% is more than one-third of the income share of the population between the 10th and 90th percentiles.

Calculating Income Share from Lorenz Curve Data