Which of the following indicators reflects inequality in the distribution of income among individuals in a population?

Correct option is A

The correct answer is: (A) Lorenz Curve

Explanation:

• The Lorenz Curve is a graphical representation that shows the distribution of income or wealth within a population.
• It illustrates the proportion of total income or wealth earned by cumulative percentages of the population, helping to visually represent inequality.

Information Booster:

• The Gini coefficient is derived from the Lorenz Curve and is used as a quantitative measure of inequality.
• If the Lorenz curve is close to the line of equality (a straight diagonal line), income distribution is more equal.
• A steeper curve indicates greater inequality.
• The Lorenz Curve is widely used by economists and policymakers to study the impact of economic policies on wealth distribution.

Additional Information:

• Dependency Ratio: Measures the ratio of the dependent population (children and elderly) to the working-age population.
• Consumer Price Index: Measures the average change over time in the prices paid by consumers for a basket of goods and services.
• Labour Force Participation Rate: Represents the percentage of the working-age population that is either employed or actively seeking employment.