JKSSB Written 2024
Answer & Explanation
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Correct Answer:
Option C —
Income distribution
The Lorenz curve is a graphical representation used in economics to show the degree of inequality in the distribution of wealth or income within a population.Understanding the Lorenz Curve
The Line of Perfect Equality: This is a straight diagonal line at a 45° angle. It represents a theoretical scenario where everyone has the exact same income (e.g., 20% of the population earns 20% of the total income).
The Curve: The actual Lorenz curve bows downward below that diagonal line. The further the curve sags away from the straight line, the greater the level of inequality in that society.
Gini Coefficient: This is a related numerical measure. It is calculated based on the area between the line of perfect equality and the Lorenz curve. A Gini coefficient of 0 represents perfect equality, while 1 (or 100%) represents perfect inequality.
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