If people's income of a country is denoted in a curved line space that it has increased, then what does it denote? (1) the income is increasing (2) the income is decreasing (3) dissimilarity is decreasing in income distribution (4) dissimilarity in income distribution is increasing

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Answer :

(3) dissimilarity is decreasing in income distribution Explanation: It shows inequality in income distribution. Inequality indices can also be derived directly from the Lorenz curve. Perhaps the most commonly-used inequality index is the Gini coefficient, which ranges from 0 (perfect equality) to 1 (perfect inequality). It is the ratio of the area enclosed by the Lorenz curve and the perfect equality line to the total area below that line.

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