Consider the following statements with regard to Lorenz Curve 1 Gini coefficient can be found out us...........

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Consider the following statements with regard to Lorenz Curve-

1.Gini coefficient can be found out using this curve.

2.If a certain portion of the population has negative wealth, the Lorenz curve can move below the x-axis

Which of the above sentences are true?

Only 1

Only 2

Both 1 and 2

None of the above

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Explanation:

Both 1 and 2

Gini coefficient can be found out using this curve.

This statement is correct. The Lorenz Curve is used to illustrate income or wealth distribution within a population, and the Gini coefficient is a summary measure of inequality derived from the Lorenz Curve.

If a certain portion of the population has negative wealth, the Lorenz curve can move below the x-axis.

This statement is also correct. The Lorenz Curve is a graphical representation of income or wealth distribution, and if a portion of the population has negative wealth, it can result in the Lorenz Curve extending below the x-axis.

Therefore, the correct option is 3 (Both 1 and 2).