Lorenz Curve
Definition
The Lorenz curve is a graphical representation that shows income distribution within an economy. It compares the cumulative share of income received by different segments of society with their corresponding cumulative share of population.
Related terms
Income Inequality: Income inequality refers to the unequal distribution of income among individuals or households in an economy.
Gini Coefficient: The Gini coefficient is a numerical measure derived from the Lorenz curve that quantifies income inequality within a country.
Poverty Line: The poverty line represents the minimum level of income required for individuals or families to meet basic needs such as food, shelter, and clothing.
"Lorenz Curve" appears in:
Study guides (1)
AP Microeconomics - 6.5 Inequality
Additional resources (1)
AP Microeconomics - Unit 6 Overview: Market Failure and the Role of Government
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Cram Mode
AP Score Calculators
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.