Exhibit 29-2

-Refer to Exhibit 29-2. This graph depicts the Lorenz curve for two countries,country 1 (Lorenz curve 1)and country 2 (Lorenz curve 2). The Gini coefficient associated with Lorenz curve 1 appears to be ____________ than the Gini coefficient associated with Lorenz curve 2. This information indicates that the income distribution is ______________ equal in country 2 than in country 1.

Question

Exhibit 29-2
 
-Refer to Exhibit 29-2. This graph depicts the Lorenz curve for two countries,country 1 (Lorenz curve 1)and country 2 (Lorenz curve 2). The Gini coefficient associated with Lorenz curve 1 appears to be ____________ than the Gini coefficient associated with Lorenz curve 2. This information indicates that the income distribution is ______________ equal in country 2 than in country 1.

Quizplus · Accepted Answer

The Gini coefficient is higher for a Lorenz curve that is further from the line of equality. If Lorenz curve 1 is further from the line of equality than Lorenz curve 2, then the Gini coefficient for country 1 is higher, indicating less equal income distribution compared to country 2.

Exhibit 29-2 -Refer to Exhibit 29-2. This Graph Depicts the Lorenz Curve