Lorenz Curve MCQs
Lorenz Curve – MCQs with Answers & Explanations
Class: 11 | Subject: Economics (Statistics for Economics)
Section: Measures of Dispersion
Topic: Lorenz Curve
As per CBSE Board Examination Pattern
Section: Measures of Dispersion
Topic: Lorenz Curve
As per CBSE Board Examination Pattern
Instructions: These Multiple Choice Questions (MCQs) are designed strictly as per the NCERT syllabus, making them ideal for CBSE Class 11 Board Examination preparation.
1. Lorenz Curve is used to measure:
Answer: B
Lorenz Curve graphically represents inequality in income or wealth distribution.
Lorenz Curve graphically represents inequality in income or wealth distribution.
2. It is a:
Answer: B
Lorenz Curve is a graphical method.
Lorenz Curve is a graphical method.
3. Perfect equality line is:
Answer: C
It shows equal income distribution.
It shows equal income distribution.
4. Greater curve bow indicates:
Answer: B
More bow → more inequality.
More bow → more inequality.
5. X-axis shows:
Answer: B
Population is plotted cumulatively.
Population is plotted cumulatively.
6. Y-axis shows:
Answer: B
Income share is plotted cumulatively.
Income share is plotted cumulatively.
7. Perfect equality occurs when curve:
Answer: B
Income share equals population share.
Income share equals population share.
8. Perfect inequality means:
Answer: B
One person earns all income.
One person earns all income.
9. Lorenz Curve is named after:
Answer: B
American economist Max O. Lorenz.
American economist Max O. Lorenz.
10. It compares:
Answer: A
Used to compare inequality levels.
Used to compare inequality levels.
11. Closer to equality line means:
Answer: B
Indicates fair distribution.
Indicates fair distribution.
12. Area between lines shows:
Answer: B
Larger area → greater inequality.
Larger area → greater inequality.
13. Related index:
Answer: B
Gini is derived from Lorenz Curve.
Gini is derived from Lorenz Curve.
14. Used in studying:
Answer: D
Applies to all distribution studies.
Applies to all distribution studies.
15. Type of measure:
Answer: C
It is graphical in nature.
It is graphical in nature.
16. Data needed:
Answer: A
Both cumulative percentages required.
Both cumulative percentages required.
17. More bow →
Answer: B
Shows uneven distribution.
Shows uneven distribution.
18. Straight equality line implies:
Answer: A
Everyone earns equally.
Everyone earns equally.
19. Useful for policy making:
Answer: A
Helps governments address inequality.
Helps governments address inequality.
20. Lorenz Curve is part of:
Answer: A
It measures dispersion in income distribution.
It measures dispersion in income distribution.
