-The above figure shows two Lorenz curves. Suppose both Lorenz curves measure wealth. Then, the curves show that wealth is

Question

Quizplus · Accepted Answer

Lorenz curves illustrate the distribution of wealth or income, with a perfectly equal distribution represented by a straight diagonal line from the bottom left to the top right. The closer a Lorenz curve is to this diagonal, the more equally wealth is distributed. Curve A, being closer to the diagonal line than curve B, indicates wealth is distributed more equally along Lorenz curve A. The curves do not provide information on the absolute level of wealth, only on how equally it is distributed.

-The Above Figure Shows Two Lorenz Curves