Lorenz curve
The Lorenz curve is a graph showing the cumulative percentage of income on the y-axis against cumulative percentage of population on the x-axis. A 45-degree line represents perfect equality; the more bowed the Lorenz curve, the greater the inequality.
Real World
The UK's Lorenz curve shows the bottom 50% of earners receive roughly 20% of total income, while the top 10% receive around 30% — data published annually by the ONS and used to inform tax and benefit policy debates.
Exam Focus
When drawing the Lorenz curve, label both axes correctly and shade the area used to calculate the Gini coefficient — unlabelled diagrams rarely earn full diagram marks.
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