IB skill practice

Analyse income inequality and redistribution

Economics SL macroeconomics skill with original exam-style diagram, data-response, and policy-evaluation seeds.

Paper 1, Paper 2 5 marks Difficulty 2

Interpret a Lorenz curve

A Lorenz curve in a Sydney newspaper economics article bows far below the line of perfect equality. Explain what this shows about income distribution. Use the labelled macro diagram, data, or extract evidence before writing the answer. Enter the answer and choose the interpretation that best matches the macroeconomic evidence.

Worked practice: economic evidence and answer

Identify the economic evidence first, then state the result and interpretation.