The Lorenz curve measures:

A Economic growth

B Income inequality by plotting the cumulative share of income against the cumulative share of the population

C GDP per capita

D Inflation rate

✓ Correct Answer: Option B

Lorenz curve: graphical representation of income distribution. The further from the 45-degree line of equality, the greater the inequality. Gini coefficient measures the area between curves.

💡 Why is B) the correct answer?

The correct answer to the question "The Lorenz curve measures:" is Option B: Income inequality by plotting the cumulative share of income against the cumulative share of the population.

The other options — A) Economic growth, C) GDP per capita, D) Inflation rate — are incorrect for this Pre-MBA Exam Prep question. As explained above: Lorenz curve: graphical representation of income distribution. The further from the 45-degree line of equality, the greater the inequality. Gini coefficient measures the area between curves.

📚 About This Pre-MBA Exam Prep Practice Question

This 3-level Pre-MBA Exam Prep question from the Economics topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free Pre-MBA Exam Prep practice test or use flashcards for spaced repetition review.

Practice Pre-MBA Exam Prep Quizzes → Browse All Questions Study Flashcards

The Lorenz curve measures:

✓ Correct Answer: Option B

📚 About This Pre-MBA Exam Prep Practice Question

Related Pre-MBA Exam Prep Questions