Figure 1
-Refer to figure 1. The red line refers to

Question

Figure 1 
-Refer to figure 1. The red line refers to

Quizplus · Accepted Answer

The red line in Figure 1 represents the Lorenz curve, which is a graphical representation of income inequality. It plots the cumulative percentage of total income received against the cumulative percentage of the population. The closer the Lorenz curve is to the line of perfect equality (indicated by the diagonal dashed line), the more equal the distribution of income. Therefore, B is the correct choice. Choice A is incorrect because Gini coefficient is a numerical measure of income inequality, not a graphical representation. Choices C and D are incorrect because they refer to theoretical lines but not the actual line in the figure.

Figure 1 -Refer to Figure 1. the Red Line Refers to