The Lorenz curve shows
A)patterns of poverty between developed and developing countries.
B)the change in gdp per capita over time.
C)the poorest's income shares fall in the early stages of growth.
D)income concentration relative to a 45-degree line.

Question

Quizplus · Accepted Answer

The Lorenz curve is a graphical representation used to illustrate the distribution of income or wealth within a society, showing the proportion of total income earned by cumulative percentages of the population. The curve is plotted against a 45-degree line that represents perfect equality, where everyone has the same income. The further the Lorenz curve is from the 45-degree line, the greater the degree of income inequality.

The Lorenz Curve Shows