The Gini coefficient for Algeria is about 0.4. How would this number be shown on a Lorenz curve?
A) It cannot be shown; the Lorenz curve and the Gini coefficient are alternative ways of measuring inequality.
B) The area between the Lorenz curve and the line of absolute equality is 40 percent of the total area under the line of equality.
C) The area between the Lorenz curve and the x-axis is 40 percent of the total area below the line of equality.
D) The length of the Lorenz curve is 40 percent longer than the line of equality.
Correct Answer:
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