A way to graphically represent income or wealth inequalityGroup of answer choicesNAFTALorenz curveInvisible handAmericanization
Question
A way to graphically represent income or wealth inequality
- Group of answer choices
- NAFTA
- Lorenz curve
- Invisible hand
- Americanization
Solution
The Lorenz curve is a graphical representation of income or wealth inequality. Here are the steps to create a Lorenz curve:
- Arrange the population from the poorest to the richest.
- On the x-axis, plot the cumulative percentage of the population. Start with 0% at the origin and end with 100% (the total population).
- On the y-axis, plot the cumulative percentage of income or wealth. Start with 0% (the poorest person's income/wealth) and end with 100% (the total income/wealth).
- Connect the points to create the Lorenz curve.
The further the Lorenz curve is from the line of equality (the 45-degree line), the greater the inequality.
Similar Questions
A way to graphically represent income or wealth inequalityGroup of answer choicesNAFTALorenz curveInvisible handAmericanization
In the United States, wealth is more unevenly distributed than income.Group of answer choicesTrueFalse
Income is an example of ___.Group of answer choicesquantitative datacategorical datacurrency dataeither categorical or quantitative data
Developed countries with more unequal distribution of wealth less social mobility.Group of answer choicesTrueFalse
Using your basic knowledge of economics, evaluate the extent to which income re-distribution is necessary to reduce the level of income inequality in society
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.