Defining the Axes and Line of Equality on a Lorenz Curve Graph
A Lorenz curve graph is constructed with specific axes and a reference line. The horizontal axis represents the cumulative share of the population, ordered from lowest to highest income, from 0% to 100%. The vertical axis shows the cumulative share of total income held by that population segment, also from 0% to 100%. Points on the graph are coordinates of (population share, income share). A 45-degree line connecting (0,0) and (100,100) is known as the line of perfect equality and serves as a benchmark for comparison.
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Economics
Economy
Introduction to Macroeconomics Course
Ch.2 Unemployment, wages, and inequality: Supply-side policies and institutions - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
CORE Econ
Social Science
Empirical Science
Science
Related
Gini Coefficients for Market vs. Disposable Income in the Netherlands (2020)
Data Points on the Lorenz Curve for Market Income in the Netherlands (2020)
Impact of Redistribution on the Poorest Quintile in the Netherlands (2020)
Defining the Axes and Line of Equality on a Lorenz Curve Graph
Calculating the Gini Coefficient from the Lorenz Curve Diagram
Near-Zero Market Income for 10% of Dutch Households (2020)
Learn After
Interpreting Income Distribution Data
On a graph used to visualize income distribution, the horizontal axis represents the cumulative percentage of the population ranked from lowest to highest income, and the vertical axis represents the cumulative percentage of total income. What does the coordinate point (60, 25) on this graph signify?
On a graph used to illustrate income distribution, a 45-degree line connects the point where 0% of the population holds 0% of the income to the point where 100% of the population holds 100% of the income. What does this specific line signify?
Match each component of a graph used to visualize income distribution with its correct description.