The diagonal line on a Lorenz curve diagram represents
A) the percentage of income received by the top 50 percent of families.
B) where the Lorenz curve would be if there were complete income equality.
C) the dollar incomes of the bottom 50 percent of families.
D) the percentage of income received by the bottom 50 percent of families.
E) the degree of inequality in the distribution of income.

Question

Quizplus · Accepted Answer

The diagonal line on a Lorenz curve diagram represents perfect income equality, where every household holds the same percentage of income. The curve itself measures the degree of income inequality in a population, with the more bowed-out curve indicating greater income inequality.

The Diagonal Line on a Lorenz Curve Diagram Represents