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Economics
Lorenz Curve
A graph that shows how income or wealth is distributed across the whole population.
The Lorenz curve is used to calculate the Gini coefficient. Economists and governments use it to track whether inequality is getting better or worse over time.It's like lining up everyone in America from poorest to richest and drawing a line that shows how much of the total money each slice owns.
Real world: A perfectly straight 45-degree line would mean everyone has exactly the same income. The more the curve bows down, the more unequal the country is.
💡 The Lorenz curve makes inequality easy to see at a glance — the farther the bow, the bigger the gap between rich and poor.