Alorenz curve showing perfect equality in the distribution of income:

a) coincides with the horizontal axis.
b) coincides with the vertical axis.
c) is a straight line with a 45-degree angle.
d) is a curve bowed to the southwest.

Option (C) is correct.

Explanation:

Lorenz curve is a graphical representation of percentage of total national income on the y-axis and percentage of total population. This curve shows us the degree of inequality of income distribution. It is one of the crucial measure of poverty.

In a inequality income distribution graph, there is a straight diagonal line at 45 degree angle and the Lorenz curve. The larger the difference between these two curves, the larger will be the inequality in the income distribution.

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