UPPSC PCS - 2018

Which of the following can be derived from the Lorenz curve?

Year Asked: 2018

A
Illiteracy level
B
Unemployment level
C
Population growth rate
D
Gini coefficient

Correct Answer

D. Gini coefficient

Detailed Explanation

The Lorenz curve plots the cumulative share of income or wealth held by the cumulative share of population, arranged from poorest to richest. The diagonal is the line of perfect equality, and the further the curve sags below it, the more unequal the distribution. The Gini coefficient is the ratio of the area between the diagonal and the Lorenz curve to the total area under the diagonal, so it is derived directly from the curve. Option D is correct.

  • A (Illiteracy level) is measured through census enumeration and literacy surveys, not by plotting income or wealth shares.
  • B (Unemployment level) comes from labour force surveys such as NSSO and PLFS, which measure the share of people without work, not the distribution of income.
  • C (Population growth rate) is computed from census counts or vital statistics like birth and death rates, and has no link to this curve.

Core concept: measurement of inequality. The Lorenz curve and Gini coefficient are central to discussions of inclusive growth and are useful in Mains answers on income disparity. Other measures such as the Palma ratio and the Atkinson index are alternatives. The Gini ranges from 0 (perfect equality) to 1 (perfect inequality).

Trap: candidates pick whichever option sounds like a social statistic. Only the distribution measure, the Gini, comes out of the curve.

This question appeared in UPPCS 2018 GS Paper 1.

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