Which of the following is measured by the Lorenz curve?

Detailed Solution:

The correct answer is “ Inequality of Income”.

Inequality of Income is measured by the Lorenz curve. The Lorenz curve is a graphical representation of income distribution in a population.

It plots the cumulative percentage of the population against the cumulative percentage of income earned by that population. A perfectly equal income distribution would result in a straight diagonal line (the line of equality), while a more unequal distribution would result in a curve that bows away from the diagonal line.