What is a Lorenz curve? What is a Gini coefficient?
What will be an ideal response?
A Lorenz curve is a curve that plots, for any given percentage of the population, the proportion of total income earned by that particular group of people.
A Gini coefficient is a number that measures a society's income inequality, based on how income is distributed across quintiles.
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Which of the following is not an example of a financial intermediary?
A) a pension fund B) an insurance company C) a commercial bank D) the New York Stock Exchange
In the neoclassical growth model, if two countries are exactly the same but one has a lower permanent budget deficit, we would expect that country to have
a. higher output, a higher capital-to-labor ratio, and higher output growth in the steady state. b. the same output and capital-to-labor ratio, but higher output growth in the steady state. c. higher output, the same capital-to-labor ratio, and the same output growth in the steady state. d. higher output, a higher capital-to-labor ratio, and the same output growth in the steady state.