Asked by Ashley Combs on May 12, 2024
Verified
Lorenz curves tell us about the
A) absolute distribution of income.
B) poverty line.
C) incidence of malnutrition.
D) relative distribution of income.
E) inverse relationship between price and the quantity demanded.
Lorenz Curves
A graphical representation used in economics to show the distribution of income or wealth within a population, indicating inequality.
Relative Distribution
A measure of how income or wealth is shared among individuals or groups within a society.
Income
A flow of money to households.
- Comprehend the concept and analytical use of Lorenz curves in illustrating income distribution.
Verified Answer
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Anthony DolceMay 15, 2024
Final Answer :
D
Explanation :
Lorenz curves are used to illustrate the relative distribution of income within a population. They show what percentage of total income is earned by what percentage of the population. The curve can be used to determine the degree of inequality within an economy.
Learning Objectives
- Comprehend the concept and analytical use of Lorenz curves in illustrating income distribution.