AGRA PH SHOWING THE DEGREE OF INEQUALITY IN THE DISTRIBUTION OF INCOME IN A SOCIETY INDUSTRY, AS WELLAS THE DEGREE OFINEQUALITY IN THE DISTRIBUTION OF WEALTH IS a. production function b. Lorenz curve c. demand curve d. Gini coefficient

The correct answer is b. Lorenz curve.<br /><br />The Lorenz curve is a graphical representation the degree of inequality in the distribution of income or wealth in a society. It plots the cumulative percentage of total income or wealth against the cumulative percentage of the population, arranged in descending order of income or wealth. The curve starts at the origin (0,0) and ends at the point (1,1), representing perfect equality where everyone has the same income or wealth.<br /><br />The degree of inequality in the distribution of income or wealth is measured by the Lorenz curve's deviation from the line of perfect equality (the 45-degree line). The closer the Lorenz curve is to the line of perfect equality, the lower the degree of inequality. Conversely, the further the Lorenz curve deviates from the line, the higher the degree of inequality.<br /><br />The Gini coefficient, mentioned in option d, is a numerical measure of income or wealth inequality based on the Lorenz curve. It ranges from 0 to 1, where 0 represents perfect equality and 1 represents perfect inequality. The Gini coefficient is commonly used to quantify the degree of inequality represented by the Lorenz curve.