What does a Lorenz curve illustrate?
A)a comparison of the distribution of income in two different countries
B)the distribution of income within a country in a given time period
C)the share of taxes paid by different groups of households
D)the change over time in the percentage of households with incomes that place them below the poverty line

Question

Quizplus · Accepted Answer

A Lorenz curve illustrates the distribution of income within a country in a given time period. It shows the cumulative share of income earned by each percentile of the population, starting from the lowest earners to the highest earners.

What Does a Lorenz Curve Illustrate