New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following statements are correct about the

    “Lorenz Curve”?         I.            The Lorenz curve is a graphical representation of the distribution of income or wealth in a society.       II.            it represents one of the best and simplest ways to illustrate the level of economic inequality in society.     III.            As the Lorenz curve moves towards the baseline, the underlying data suggests that the unequal distribution keeps increasing.
    A I and II only Correct Answer Incorrect Answer
    B II and III only Correct Answer Incorrect Answer
    C I and III only Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer

    Solution

    The Lorenz curve is a graphical representation of the distribution of income or wealth in a society. it represents one of the best and simplest ways to illustrate the level of economic inequality in society. As the Lorenz curve moves away from the baseline, the underlying data suggests that the unequal distribution keeps increasing.

    Practice Next

    Relevant for Exams: