Explain what you understand by the Lorenz Curve and Gini Coefficient.
The Gini Coefficient measures the area between the Lorenz curve and the line of absoluate equality in an economy. The bigger the Gini Coefficient, the greater the inequality in a single country. Fiscal policy can help redistribute income and reduce inequality through taxation of high earners and welfare to those on lower incomes.
TH
Related Economics A Level answers
All answers ▸Using a diagram, explain how an economy's exchange rate is determined. 4 marks. AS Level The National and International Economy
Why does inflation decrease but prices continue to go up?
How can globalisation increase domestic competitiveness?
Explain how the central bank can change interest rates to manipulate Aggregate Demand.