The Lorenz curve is:
A) another name for the Gini-Lorenz coefficient.
B) another name for the Gini coefficient.
C) a graphical presentation of the cumulative distribution of income or wealth.
D) a method of studying quintiles.

Question

Quizplus · Accepted Answer

The Lorenz curve is a graphical representation of the distribution of income or wealth within a society, showing the proportion of the total income or wealth possessed by the bottom x% of the people. It does not directly measure inequality but illustrates the degree of inequality. The Gini coefficient, on the other hand, is a numerical measure of inequality derived from the Lorenz curve.

The Lorenz Curve Is