The greater the area between the Lorenz curve and the diagonal line of absolute equality,the more inequality exists.

Question

Quizplus · Accepted Answer

The area between the Lorenz curve and the diagonal line represents the degree of income inequality in a society. The greater the area between the Lorenz curve and the line of absolute equality, the more unequal the distribution of income in that society. Therefore, the statement is true.

The Greater the Area Between the Lorenz Curve and the Diagonal