Asked by Sarah Randolph on May 11, 2024
Verified
What is a Lorenz curve? How is it constructed?
Lorenz Curve
A graphical representation used to show the distribution of income or wealth within an economy, illustrating the degree of inequality.
Constructed
Developed or formed through a deliberate process of bringing components or elements together.
- Elucidate the indices of income disparity, encompassing the Gini coefficient and the Lorenz curve.
Verified Answer
JJ
Jasmine JonesMay 16, 2024
Final Answer :
The Lorenz curve is a curve showing the distribution of income in an economy. The cumulated percentage of families (income receivers)is measured along the horizontal axis and the cumulated percentage of income is measured along the vertical axis. The quintile data is then plotted using cumulative percentages.
Learning Objectives
- Elucidate the indices of income disparity, encompassing the Gini coefficient and the Lorenz curve.