A Lorenz curve measures

Question

Quizplus · Accepted Answer

The Lorenz curve is a graphical representation of the cumulative distribution of income or wealth. It is used to measure the degree of income or wealth inequality in a society. The Lorenz curve is constructed by plotting the cumulative percentage of the population on the horizontal axis and the cumulative percentage of income or wealth on the vertical axis. A perfectly equal distribution of income or wealth would be represented by a 45-degree line. The more the Lorenz curve deviates from the 45-degree line, the greater the degree of income or wealth inequality.

A Lorenz Curve Measures