Asked by Cristian Garcia on Jun 16, 2024
Verified
A Lorenz curve is a graph that shows
A) the equity versus efficiency trade-off.
B) how many households are living in poverty.
C) the trade-off between inflation and unemployment.
D) the distribution of household income.
Lorenz Curve
A visual depiction showing how income or wealth is spread out across a society, highlighting the levels of inequality.
- Contrast the different indicators of income inequality, such as the Gini coefficient and Lorenz curve.
Verified Answer
JH
Jason HoàngJun 20, 2024
Final Answer :
D
Explanation :
The Lorenz curve is a graphical representation used to show the distribution of income or wealth within an economy, illustrating the proportion of the total income of a population that is cumulatively earned by the bottom x% of the population.
Learning Objectives
- Contrast the different indicators of income inequality, such as the Gini coefficient and Lorenz curve.