The lorenz Curve which is shown represents the inequality of income in the United States. The solid black line illustrates the perfect income inequality, but the blue line which is the actual lorenz Cruve represents the inequality of income in the United States. The lorenz curve is typically used to show various forms of economic quantities. These quantities can be anything from income, wealth, statistical values or anything that may be associated with income. The downward bend of the graph shows just how disproportionate the incomes actually are when comparing the population and the national income.
Thursday, July 14, 2011
Lorenz Curve
The lorenz Curve which is shown represents the inequality of income in the United States. The solid black line illustrates the perfect income inequality, but the blue line which is the actual lorenz Cruve represents the inequality of income in the United States. The lorenz curve is typically used to show various forms of economic quantities. These quantities can be anything from income, wealth, statistical values or anything that may be associated with income. The downward bend of the graph shows just how disproportionate the incomes actually are when comparing the population and the national income.
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