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The Lorenz curve focuses on (a) production
The Lorenz curve focuses on
(a) production.
(b) consumption.
(c) relative inequality.
(d) absolute inequality.
(e) inflation.
Expert Solution
The Lorenz curve focuses on (c) relative inequality. The Lorenz Curve is a graphical representation of the cumulative share of people from lowest to highest incomes versus the cumulative share of income earned. The larger the gap between the curve and the 45 degree line, the larger the inequality.
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