Question

Measures of distribution of income:

1. Philip Curve
2. Lorenz Curve
3. Marshall Curve
4. Lafer Curve

Answer 1

Correct Answer - Option 2 : Lorenz Curve

The correct answer is Lorenz Curve.

• The Lorenz curve is a graphical representation of the distribution of income. Hence, option 2 is correct.
• The curve was developed by Max O. Lorenz.
• It was developed in 1905 for representing inequality of wealth distribution.
• The Curve is closely associated with measures of income inequality, like the Gini coefficient.

• Income distribution covers how a country's total GDP is distributed amongst its population.
• The Gini coefficient is also known as the Gini index or Gini ratio.
• The Gini coefficient is a measure of statistical dispersion intended to represent the income inequality within a nation or any other group of people.