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Chapter 15: Q. 23 (page 378)

What is measured on the two axes of a Lorenz

curve?

Short Answer

Expert verified

Cumulative percentage of population and cumulative portion of income is measured on the two axes of a Lorenz

curve

.

Step by step solution

01

Step 1. Lorenz curve

It's a Graphical way of studying dispersion, Lorenz curve, was first used to measure the inequalities of income in society, the greater distance of the curve from the line of equality distribution more is the inequality in its series

02

Step 2. Measures

X- axis is horizontal axis shows cumulative percentage population.

Y-axis is Vertical axis shows cumulative portion of income.

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Most popular questions from this chapter

We have discovered that the welfare system discourages recipients from working because the more income they earn, the less welfare benefits they receive. How does the earned income tax credit attempt to loosen the poverty trap?

To reduce income inequality, should the marginal tax rates on the top 1% be increased?

What are some reasons why a certain degree of inequality of income would be expected in a market economy?

If a family of three earned $20,000, would they

be able to make ends meet given the official poverty threshold?

What are the main reasons economists give for the increase in inequality of incomes?
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