Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

A Lorenz curve shows the distribution of income within a country. The greater the distance between the Lorenz curve and the line of absolute equality, the higher the level of inequality. What is the value of the Gini coefficient when the Lorenz curve is at line 2?

  • AF + G over H
  • BF + G over F + G + H
  • CG over G + H
  • DH over F + G + H

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