Measuring inequality

Question 1

Lorenz Curve

Answer 1

Graphically represents distribution of income

x-axis % of household
y-axis % of income

While line of equality shows what equal distribution of wealth looks like, Lorenz Curve shows actual distribution

Question 2

Gini Coefficient

Answer 2

Number between 0&1 that measures degree of inequality in distribution of income of wealth

0 is equal while 1 is unequal