Economics • Economic BasicsEasy
Which of the following curves represents the graphical representation of income inequality within a population?
A. Phillips Curve
B. Lorenz Curve✓ Correct Answer
C. Laffer Curve
D. Engel Curve
💡 Solution & Explanation
The Lorenz curve plots cumulative percentages of total income received against cumulative numbers of recipients, providing a direct visual measure of income inequality within an economy. In contrast, the Phillips curve depicts the inverse relation between inflation and unemployment, while the Laffer curve illustrates tax revenue dynamics. Quantitative tools for measuring economic inequality are vital components of economics syllabi.
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