GENERAL KNOWLEDGE

GK

INDIAN ECONOMY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following is used for the measurement of distribution of income?

A	Laffer Curve
B	Engel’s Law
C	Gini-Lorenz Curve
D	Philip Curve

Explanation:

Detailed explanation-1: -The correct answer is Lorenz Curve. The Lorenz curve is a graphical representation of the distribution of income.

Detailed explanation-2: -While the Lorenz curve simply shows the general distribution of wealth or income, the Gini index (or Gini coefficient) provides a percentage, from 0% to 100%, of income equality. The higher the percentage, the higher the level of inequality.

Detailed explanation-3: -Detailed Solution. The correct answer is Inequality of Income. Lorenz curve represents the distribution of income in an economy.

Detailed explanation-4: -What is the Lorenz curve used for? A Lorenz curve is a graphical representation of income inequality or wealth inequality. The graph plots percentiles of the population on the horizontal axis according to income or wealth.

There is 1 question to complete.