Measuring Income Inequality

Read this article about the Lorenz Curve, which seeks to measure income inequality. Make sure to answer the "Try It" quiz questions, and check your answers.

4. Try It

Which of the following statements is not accurate regarding distribution of income?

Income inequality can change without affecting the poverty rate.
A method used to look at distribution of income involves ranking households by quads.
Poverty rates cannot change if inequality does not change.