Exhibit 29-1

-Refer to Exhibit 29-1. If the Gini coefficient is some number greater than 0,but less than 1,then the Lorenz curve could be

Question

Exhibit 29-1
 
-Refer to Exhibit 29-1. If the Gini coefficient is some number greater than 0,but less than 1,then the Lorenz curve could be

Quizplus · Accepted Answer

If the Gini coefficient is some number greater than 0, but less than 1, it indicates some level of income inequality. The Lorenz curve is a graphical representation of income distribution in a society. Point O represents the lowest income earners and point B represents the highest income earners. The curve connecting point O to point B represents the actual income distribution in the society. Since the Gini coefficient is greater than 0 but less than 1, the Lorenz curve will be bowed away from the line of perfect equality (represented by line AB) but will not touch the top right corner (represented by line OB). Therefore, the curve connecting point O to point B is the best choice.

Exhibit 29-1 -Refer to Exhibit 29-1. If the Gini Coefficient Is Some