The lorenz curvebreaks down the income levels of each group in the economy. shows what portion of the population is working as professionals, white- and blue-collar, workers and workers at menial tasks. shows what portion of total money income is accounted for by different proportions of the nation's households. shows what portion of the population are living in poverty and what portion are living in wealth.

Option (B) is correct.

Explanation:

Correct Option: Shows what portion of total money income is accounted for by different proportions of the nation's households.

Lorenz curve is a graphical representation of income inequality and wealth inequality in an economy. In a graphical representation, there is a straight line and if Lorenz curve is same as the straight line then there is an income equality. The gap between straight line and curved line shows us the income inequality among the households. The larger the gap between these two curves the greater will be the income inequality in an economy.

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