The Lorenz curve is simple, but students still drop marks by mixing up what the curve means. The closer the curve is to the line of equality, the more equal the income distribution.
How to draw it
- Draw the line of equality from bottom left to top right
- Draw the Lorenz curve below it
- Label cumulative population and cumulative income
Animated draw order
Student memory line: Curve closer to equality -> lower Gini -> less inequality
IB Economics Lorenz curve diagram: when the curve moves closer to the equality line, inequality falls and the Gini coefficient drops.
Exam trick
If the curve moves closer to the equality line, inequality has fallen. If it moves further away, inequality has risen. Keep the explanation that direct.
This diagram appears often in development case studies, so it pairs naturally with the Kenya walkthrough and the growth versus environment essay.
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