Measuring and Assessing Income Inequality Using Lorenz Curve and Gini Index

The video tutorial explores income inequality, focusing on how to measure and assess it using the Lorenz curve and Gini index. It explains the Lorenz curve as a graphical representation of income distribution and introduces the line of equality as a benchmark. The tutorial provides examples of equal and unequal income distributions, illustrating how the Lorenz curve changes. It also introduces the Gini index as a numerical measure of income inequality, explaining its calculation and significance. The tutorial aims to help viewers understand these concepts and their application in analyzing economic inequality.

What is the purpose of using a Lorenz curve in the analysis of income inequality?

Explain the significance of the line of equality in the context of income distribution.

What are the key components needed to plot a Lorenz curve?

Describe the relationship between the Lorenz curve and income inequality.

How does the Gini index help in measuring income inequality?

What does it mean if the Gini index is equal to zero?

Discuss the implications of having a Gini index value of one.