Question

1. what is a key characteristic of the lorenz curve?

it shows only the lowest income quintile
it only measures wealth distribution, not income
it compares cumulative population share to cumulative income share
it represents perfect income equality with a curved line

Explanation:

The Lorenz curve is a graphical representation used in economics. It plots the cumulative percentage of the population (on the x - axis) against the cumulative percentage of income (on the y - axis). It is not limited to the lowest income quintile. It can measure both income and wealth distribution (though the question doesn't focus on that nuance here). A straight line (not a curved line) represents perfect income equality.

Answer:

It compares cumulative population share to cumulative income share.