Exhibit 12-2 Lorenz curve
-As shown in Exhibit 12-2, the degree of unequal income distribution is measured by the area between the:

Question

Exhibit 12-2 Lorenz curve 
-As shown in Exhibit 12-2, the degree of unequal income distribution is measured by the area between the:

Quizplus · Accepted Answer

The Lorenz curve shows the cumulative percentage of income received by the corresponding cumulative percentage of households, while the perfect equality line shows the 45-degree line where each household receives an equal percentage of income. The degree of unequal income distribution is measured by the area between the Lorenz curve and the perfect equality line, which is represented by choice D.

Exhibit 12-2 Lorenz Curve