The degree of inequality in the distribution of income in an economy is depicted in a(n): A) Lorenz curve B) Phillips curve C) Engels curve D) Indifference curve

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The answer is the 'A' option. That is the Lorenz curve.

A Lorenz curve is a graph that shows how wealth or income is distributed among a population.

Lorenz curves plot population percentiles against the total wealth or income of those who fall inside that percentile or above it.

For the purpose of assessing inequality within a population, Lorenz curves and the statistics derived from them are frequently utilized.

Lorenz curves are mathematical estimates for measuring true inequality since they are based on fitting a continuous curve to partial and discontinuous data.

Hence, The degree of inequality in the distribution of income in an economy is depicted in a Lorenz curve.

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