Lorenz curves drawn closer to the 45 degree line show distributions of income that are more equal.

Question

Quizplus · Accepted Answer

This statement is true. The 45 degree line represents perfect equality, where each quintile of the population earns an equal share of the total income. As the Lorenz curve moves closer to the 45 degree line, it shows that the actual distribution of income is closer to perfect equality, meaning more equal.

Lorenz Curves Drawn Closer to the 45 Degree Line Show