Measurement of Inequality Quiz

Lorenz curves are graphical representations of income or wealth distribution within a population, comparing the cumulative share of income received by the bottom x% of the population to the cumulative share of the population. They are significant in measuring inequality as they provide a visual representation of the distribution of income or wealth, allowing for the calculation of the Gini coefficient which quantifies the degree of inequality.

Quintiles and deciles are points that divide a distribution into five and ten equal parts, respectively. They are used in measuring inequality by providing insight into the distribution of income or wealth within a population, allowing for comparisons between different segments of the population.

The Gini coefficient is a measure of statistical dispersion representing the income or wealth distribution of a nation's residents. Its limitations in measuring inequality include the inability to capture changes in the shape of the distribution and the fact that it does not consider factors such as social policies and access to public goods and services.