Question

68. Which of the following is used for the measurement of distribution of income?

• A. Laffer Curve
• B. Engel’s Law
• C. Gini-Lorenz Curve
• D. Philip Curve

Answer 1

The correct option is C Gini-Lorenz Curve

While the Lorenz curve is most often used to represent economic inequality, it can be used to represent unequal distribution in any system. The farther away the curve is from the baseline, represented by the straight diagonal line, the higher the level of inequality. In economics, the Lorenz curve denotes inequality in the distribution of either wealth or income. The Gini coefficient is used to express the extent of inequality in a single figure. It can range from 0 (or 0%) to 1 (or 100%)