Economics • Indian EconomyEasy
What does the 'Lorenz Curve' measure in the study of the Indian economy or any economic system?
A. Income or wealth distribution inequality within a population✓ Correct Answer
B. Relationship between tax rates and government revenue
C. Percentage change in employment relative to economic growth
D. Rate of inflation over successive five-year plans
💡 Solution & Explanation
The Lorenz Curve is a graphical representation utilized in economics to measure income or wealth distribution inequality within a population, where cumulative percentage of income is plotted against cumulative percentage of recipients. Alternative choices describe concepts like the Laffer Curve for tax rates or Okun's Law relating unemployment to economic growth. From this curve, the Gini coefficient is mathematically derived to quantify inequality.
More Economics Indian Economy questions
- What does the 'Gati Shakti National Master Plan' primarily seek to achieve in the Indian economy?
- What is the core mandate of the 'Fifteenth Finance Commission' of India headed by N.K. Singh?
- What is the primary economic implication of 'Crowding Out' effect in public finance and fiscal management?
- What does the 'Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY)' aim to provide?
- What is the primary objective of the 'PM-GKAY' (Pradhan Mantri Garib Kalyan Anna Yojana) scheme?