Suppose 10 percent of the families receive 10 percent of the income, 20 percent of the families receive 20 percent of the income, and so forth. The Lorenz curve would be

Question

Quizplus · Accepted Answer

The Lorenz curve in this scenario would be a straight line at a 45-degree angle from the origin because the distribution of income is perfectly equal among families, meaning each percentage of families receives an exactly proportional percentage of the income.

Suppose 10 Percent of the Families Receive 10 Percent of the Income