The Lorenz curve represents:

Question

Quizplus · Accepted Answer

The Lorenz curve is a graphical representation of the distribution of income in a society. It shows the cumulative percentage of income received by the cumulative percentage of the population. A perfectly equal distribution of income would be represented by a straight line from the origin to the point (1,1). A perfectly unequal distribution of income would be represented by a curve that starts at the origin and ends at the point (1,0). The Lorenz curve for most societies falls between these two extremes.

The Lorenz Curve Represents