What Is Income Inequality?
Perfect equality: it does not say that incomes are zero; the curve is the straight diagonal with no belly at all.
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1.What does a Gini of zero mean?
Perfect equality: it does not say that incomes are zero; the curve is the straight diagonal with no belly at all.
2.What does the Lorenz curve show, and what would it look like if everyone earned the same?
On the bottom is the cumulative share of households, on the side their cumulative share of income. If everyone earned the same, the curve would be a straight diagonal.
3.What does the poorer half of the ten made-up households earn, out of 400?
The richest household earns 104 of the 400, which is 26 percent.
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Education only. Not financial advice.