Which of the following does not measure inequality?
A)The 90-10 wage gap.
B)The 50-10 wage gap.
C)The Gini coefficient.
D)The actual Lorenz curve.
E)The perfect-equality Lorenz curve.

Question

Quizplus · Accepted Answer

The perfect-equality Lorenz curve represents a hypothetical scenario where every person or household has the same income or wealth, and therefore cannot measure inequality as it does not show any variations or differences in the distribution of income or wealth. The other options measure inequality in various ways. The 90-10 and 50-10 wage gaps measure the difference in earnings between the top and bottom percentiles of earners. The Gini coefficient measures income inequality across the entire income distribution. The actual Lorenz curve represents the actual distribution of income or wealth and can be used to measure inequality.

Which of the Following Does Not Measure Inequality