Question

A Lorenz curve measures the ________ on the vertical axis.cumulative percentage of money incomecumulative percentage of family wealthcumulative percentage of familiesdemand of families on welfare

Answer 1

Answer:

cumulative percentage of money income

Explanation:

Lorenz curve refers to the graphical representation of income inequality among the individuals in an economy. It is shown as the bend curve in the income equality diagram. There is one 45 degree line which is known as the line of equality.

Cumulative percentage of money income is shown on the vertical axis and percentage of households by income distribution is shown on the horizontal axis.

The larger the gap between the Lorenz curve and the line of equality represents higher income inequality.