Economics • Economic BasicsMedium
What does an analysis of the Lorenz curve and Gini coefficient applied to household consumption expenditure across Haryana districts typically reveal about regional income distribution?
A. A noticeable disparity between affluent industrial-urban districts and underdeveloped southern agrarian districts✓ Correct Answer
B. Perfect income equality across every single household in the state
C. A complete inversion where rural households consistently earn higher per capita incomes than urban corporate executives
D. Zero variance in consumption patterns between metropolitan Gurugram and remote Mewat villages
💡 Solution & Explanation
The Gini coefficient and Lorenz curve highlight significant regional inequalities, showing that wealth and high consumption expenditures are heavily concentrated in the National Capital Region districts compared to southern and southwestern rural pockets. The Lorenz curve plots cumulative percentages of total income against cumulative percentages of population, with the Gini coefficient quantifying this inequality numerically from zero to one. Addressing these regional imbalances remains a central goal of state developmental planning.
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