6.5

Income Inequality and the Lorenz Curve

AP Microeconomics

Measuring Income Inequality

Income Distribution

The Lorenz Curve

Area A2040608010020406080100Cumulative % of PopulationCumulative % of IncomePerfect EqualityLorenz Curve

The further the Lorenz Curve bows from the 45° line, the greater the inequality

Reading the Lorenz Curve

The Gini Coefficient

Sources of Income Inequality

Comparing Income Distributions

Functional Income Distribution

AP Exam Tips

Common Mistakes