A Lorenz curve graphic shows:

a. what equal and unequal distribution of income will look like in the future.

b. what perfect equality of the income distribution looks like compared to the actual income distribution.

c. what perfect inequality of the income distribution looks like compared to perfect equality of the income distribution.

Question

Social Studies

Payne

17 September, 02:20

A Lorenz curve graphic shows:

a. what equal and unequal distribution of income will look like in the future.

b. what perfect equality of the income distribution looks like compared to the actual income distribution.

c. what perfect inequality of the income distribution looks like compared to perfect equality of the income distribution.

+2

Answers (1)

Know the Answer?

Zaniyah Mckay · Answer 1

b. What perfect equality of the income distribution looks like compared to the actual income distribution

Explanation:

The Lorenz Curve is the graphical representation of the wealth distribution among the population. It is actually the distribution of income curve. Lorenz Curve was developed by Max Lorenz in the year 1906. This curve represents the proportion of income which is earned by a given percentage of the population. The Lorenz Curve which is more bowed out means there is higher income inequality in the country.

Thus it represents the perfect income equality distribution to that of the actual income distribution.

Hence the correct answer is (b).