Asked by Khaly Barry on Apr 26, 2024
Verified
The closer the Lorenz curve is to the diagonal, the greater is the degree of income inequality.
Lorenz Curve
The Lorenz curve is a graphical representation of the distribution of income or wealth within a society, illustrating inequalities.
Income Inequality
The unequal distribution of an economy’s total income among households or families.
- Understand the methods for measuring income equality, including the Lorenz curve and Gini coefficient.
Verified Answer
MA
Maryam AdepitanMay 01, 2024
Final Answer :
False
Explanation :
The closer the Lorenz curve is to the diagonal line (the line of perfect equality), the less the degree of income inequality, as it indicates a more equal distribution of income.
Learning Objectives
- Understand the methods for measuring income equality, including the Lorenz curve and Gini coefficient.