A Lorenz curve that represents an unequal income distribution is

Question

Quizplus · Accepted Answer

A Lorenz curve is a graph that shows the distribution of income or wealth within a population by comparing the cumulative percentage of income or wealth received with the cumulative percentage of the population. If the income or wealth distribution is perfectly equal, the Lorenz curve would be a diagonal line from the origin to the point (100%, 100%). However, if the distribution is unequal, the Lorenz curve will be a bowed curve below this diagonal line. Therefore, the correct answer is C, a bowed curve.

A Lorenz Curve That Represents an Unequal Income Distribution Is