The Lorenz Curve and the Gini Coefficient Do Not Change

question 41

True/False

The Lorenz curve and the Gini coefficient do not change over time because people always stay within their income brackets.

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Definitions:

Valuation Rate

The interest rate or discount rate used in determining the present value of future cash flows or in appraising the value of an asset.

Market Value

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Assessed Valuation

The dollar value assigned to a property for purposes of measuring applicable taxes, determined by a public tax assessor.

Taxation

The imposition of compulsory levies on individuals or entities by governments to fund public expenditures.