Question 1

Is the following assertion true or false? Explain.

The Kuznets inverted-U hypothesis is an empirical fact corroborated by the process of economic development of every country.

Question 1 options:

A	False, it appears for no countries
B	True, the Kuznets curve is true by definition
C	True, it is empirical fact for all countries
D	False, it appears for some countries and not others

Question 2

The Lorenz curve depicts the variance of the size distribution of income from the diagonal line of perfect equality.

A Lorenz curve equal to the diagonal line depicts perfect equality in income.

What is the shape of a Lorenz curve depicting perfect inequality (i.e. when one person gets all of the income while everybody else gets nothing)?

Question 2 options:

A	A diagonal line.
B	It would be a point instead of a curve.
C	An L-shape.
D	A reversed-L shape.