Glossary · Macro · Economic growth
Lorenz curve and Gini coefficient
The Lorenz curve plots the share of total income earned by the poorest x percent of people. Perfect equality is a 45-degree line, and the more the curve sags below it the more unequal the country. The Gini coefficient measures that sag as a number from 0 (everyone equal) to 1 (one person has everything).
Also called: Gini coefficient, Gini index, income inequality
Related terms
More from economic growth
Definitions are the start
See the term used, not just defined.
The full course teaches every term in context, with worked examples, interactive graphs and practice questions that remember what you get wrong.