Unit 3.4 · Economics of Inequality and Poverty
Constructing a Lorenz Curve (HL only)
AO4HLDiagram required
Syllabus Requirement
Construction of a Lorenz curve from income quintile data to analyze inequality.
Assessment Objectives
AO4Use of Appropriate Skills
HLThis topic is assessed at Higher Level only.
Summary
The Lorenz curve is a graphical tool that illustrates the distribution of income or wealth within a population, highlighting levels of inequality. It is often paired with the Gini coefficient, a numerical measure that quantifies income inequality, ranging from 0 (perfect equality) to 1 (total inequality). Understanding these concepts is essential for analyzing economic disparities and their implications in society.