Economics • Economic BasicsEasy
Which of the following economic concepts measures the degree of income inequality within a population using a graphical representation of cumulative income against cumulative population?
A. Phillips Curve
B. Laffer Curve
C. Lorenz Curve✓ Correct Answer
D. Kuznets Curve
💡 Solution & Explanation
The Lorenz Curve provides a graphical representation of income or wealth inequality within an economy by plotting the cumulative percentage of total income against the cumulative percentage of population. The Gini coefficient is subsequently derived from this curve to quantify inequality numerically. Economic inequality metrics are essential concepts for civil services and economics exams.
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