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What Is a Lorenz Curve? How Can It Be Used

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What is a Lorenz curve? How can it be used to show the degree of inequality of income distribution? Given the data for Brazil shown, draw on the graph provided a Lorenz curve. Is the income distribution relatively equal or unequal? Explain how you reached your answer.


Definitions:

Future Value

The future worth of a current asset on a certain date, calculated by presuming a specific growth rate over a period.

Initial Deposit

The first amount of money placed in an account or investment, often setting the foundation for future financial growth.

Cell D

A reference point, typically in a spreadsheet or grid, denoting a specific cell within the column labeled 'D'.

Initial Deposit

The first amount of money placed into an account or investment, serving as the starting balance from which future transactions are measured.

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