Lorenz curve is based on which of the following? (i) Gini coefficient (ii) coefficient of correlation (iii) coefficient of determination (iv) None of the above. Unbalanced growth i... Lorenz curve is based on which of the following? (i) Gini coefficient (ii) coefficient of correlation (iii) coefficient of determination (iv) None of the above. Unbalanced growth is related to which of the following? (i) backward linkage (ii) forward linkage (iii) Both (i) and (ii) (iv) Either (i) or (ii). One of the proponents of balanced growth theory is? (i) A. Hirschman (ii) W. W. Rostow (iii) R. Nurkse (iv) A. V. Banerjee.

Understand the Problem

The question presents multiple-choice options related to economic theories and concepts, specifically focusing on the Lorenz curve, unbalanced growth, and balanced growth theory. It asks about the foundational basis of the Lorenz curve and related concepts, making it necessary to select the correct theoretical framework.

Answer

Gini coefficient; Both (i) and (ii); R. Nurkse

The Lorenz curve is based on the Gini coefficient. Unbalanced growth is related to both backward and forward linkages. One of the proponents of the balanced growth theory is R. Nurkse.

More Information

The Lorenz curve is a graphical representation of income distribution and inequality, with the Gini coefficient quantifying this inequality. Unbalanced growth theory, formulated by Albert O. Hirschman, focuses on strategic sectors that generate backward and forward linkages. Ragnar Nurkse is known for his balanced growth theory, emphasizing simultaneous investment across various sectors.

Tips

A common mistake is confusing the Lorenz curve with other statistical measures. Remember that the Lorenz curve specifically deals with the Gini coefficient and income inequality.

Sources

Lorenz Curve - Investopedia - investopedia.com
Social and Economic Inequality - Boston University - bu.edu
Solow on endogeneous growth theory - academic.oup.com

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