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
Answered by Tom H. Economics tutor

6380 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Explain how the price mechanism responds to excess supply in a free market


How does a reduction in the interest rate affect aggregate demand in a closed economy?


Why is the concept of the “marginal “ so important in economics?


How can I use a graph to show the effects of a negative change in interest rates on GDP?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences