Friday, July 15, 2011

40. Lorenz Curve

The Lorenz curve, or an accumulative line graph, is an economic graph designed to show the unequal distribution of income in a given area. The equal distribution is graphed as a straight line, and the actual distribution is plotted over it. The degree to which the actual distribution line "sags" below the equal distribution is determiner of inequity. The graph above compares the inequity of China and Brazil's income in 2004. From these curves one could conclude that China had a more equally distributed income  than Brazil did in 2004.

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