Why Might a Lorenz Curve Provide a Suitable Way to Compare

question 5

Multiple Choice

Why might a Lorenz curve provide a suitable way to compare the distribution of wealth in the UK, US and Japan?

• A) It can be used to compare multiple variables at the same time
• B) It can be used to show how a variable is shared amongst subjects in a population
• C) It can be used to illustrate the rate of change of a variable through time
• D) It can be used to evaluate distribution of variables in different sized classes

---

Definitions:

Anecdotal Information

Information derived from personal accounts, observations, or reports, rather than systematic scientific evaluation.

Representative

An entity or individual that stands in or speaks on behalf of others.

Forewarned

Having prior knowledge or warning about a future event, often enabling preparation or prevention.

Empirical

Based on observation or experience rather than theory or pure logic, typically involving data collection and analysis.