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.

8. Try It

Considering the Lorenz curve in the figure below, the 45 degree curve is ________ and ________ is/are the inequality data presented on a graph.

Graph Image

    • label a; label b only
    • label a; labels band c
    • label a; label c only

The Lorenz curve presents an alternative way of showing inequality data. Which graphical description typically means a more unequal distribution of income?

    • closer to the 45-degree line
    • horizontal to income quintiles on the x-axis line
    • farther down and away from the 45-degree line