Refer to the above graph,which shows four different Lorenz curves (I,II,III,and IV).The greatest increase in income inequality would occur with a shift in a Lorenz curve from:

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Quizplus · Accepted Answer

The shift from Lorenz Curve II to IV represents a greater concentration of income among the top earners, resulting in a more unequal distribution of income. This is evident from the larger area between the blue curve (representing the actual income distribution) and the red dotted line (representing an equal distribution) in Lorenz Curve IV compared to II. So, the greatest increase in income inequality would occur with a shift from Lorenz Curve II to IV.

Refer to the Above Graph,which Shows Four Different Lorenz Curves