Lorenz Curve Flashcards
1
Q
What is the Lorenz curve?
A
Shows a geographical distribution of wealth.
The proportion of income wanted by any given % of population.
2
Q
How is perfect distribution shown?
A
By a straight line
3
Q
If there is a large gap between the perfect inequality and actual income, what does this show?
A
The unequal distribution of income in the country
4
Q
What do the poorest 20% of the population earn in actual income distribution ?
A
Only 5% of national income
5
Q
How much do the poorest 20% in perfect equality get ?
A
20% of income earned in population.
6
Q
What else helps distinguish inequality in population ?
A
Gini index.
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