The Lorenz curve and the line of perfect income equality will be one and the same in an economy if 20% of all households receive 20% of all income.

Question

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The Lorenz curve and the line of perfect income equality would be the same if all portions of the population received exactly proportional shares of income, meaning every segment, not just the bottom 20%, would need to receive an exactly proportional share of the total income.

The Lorenz Curve and the Line of Perfect Income Equality