Which of the following summarises the information provided by a Lorenz curve?

Question

Quizplus · Accepted Answer

The Lorenz curve shows the cumulative income share of the population on the x-axis and the cumulative income received on the y-axis. The Gini coefficient, which measures income inequality, is derived from the Lorenz curve. The closer the Lorenz curve is to the diagonal line, the more equal the income distribution, and the lower the Gini coefficient. Conversely, the further the Lorenz curve is from the diagonal line, the more unequal the income distribution, and the higher the Gini coefficient. Therefore, C is the correct answer as it summarizes the information provided by a Lorenz curve.

Which of the Following Summarises the Information Provided by a Lorenz