Lorenz Curve- A Lorenz curve shows the degree of inequality that exists in the distributions of two variables, and is often used in economics to illustrate the extent that income or wealth are distributed unequally in a particular society, as depicted in the graph above. The linear line would reflect an absolute even distribution of wealth. A Gini coefficient is a summary numerical measure of how unequally one variable is related to another, and can be calculated using the area of inequality between the line of perfect equality and the Lorenz curve (A) and the area underneath the Lorenz Curve (B). This downward bending of the Lorenz curve indicates that a small percentage of families earns a disproportionately large amount of the income (http://www.unc.edu/depts/econ/byrns_web/Economicae/Figures/Lorenz.htm).
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