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.
9. Try It
These questions allow you to get as much practice as you need, as you can click the link at the top of the first question ("Try another version of these questions") to get a new set of questions. Practice until you feel comfortable doing the questions.
Which curve shows bigger income inequality?
- Blue
- Red
- The two countries have equal income distribution.
Hint: In a Lorenz curve diagram, a more unequal distribution of income will loop farther down and away from the 45-degree line, while a more equal distribution of income will move the line closer to the 45-degree line.