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Chapter 30: Q.30.1 - Learning Objectives (page 668)

Describe how to use a Lorenz curve to represent a nation's income distribution

Short Answer

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The Lorenz curve is the realistic technique for concentrating on scattering. Showing the degree of takeoff scattering between equivalent appropriation and real dispersion of a variable is utilized.

Step by step solution

01

Given Information

The Lorenz curve is the realistic technique for concentrating on scattering. Showing the degree of light scattering between equivalent circulation and real dissemination of a variable is utilized.

02

Explanation 

On the X-axis the bent line shows the combined level of workers, positioned from least fortunate to most extravagant, against the aggregate level of all-out pay on the Y-axis. This is the Lorenz bend.

The Lorenz Curve is contrasted with the line of ideal balance to show the degree of pay and abundance disparity in a country.

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Most popular questions from this chapter

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