Question 21M.1.HL.TZ2.4a
| Date | May 2021 | Marks available | [Maximum mark: 10] | Reference code | 21M.1.HL.TZ2.4a |
| Level | HL | Paper | 1 | Time zone | TZ2 |
| Command term | Explain | Question number | a | Adapted from | N/A |
Explain how the Lorenz curve and the Gini coefficient are used to measure differences in income inequality between countries.
[10]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part A.
Answers may include:
- definitions of income inequality, Lorenz curve, Gini coefficient
- Lorenz curve diagram(s) with one Lorenz curve that is closer to the line of perfect income equality and another Lorenz curve that is further away from the line of perfect income equality
- explanation of why a Lorenz curve closer to the line of perfect income equality (Gini coefficient closer to zero) indicates higher income equality and/or explanation of why a Lorenz curve further away from the line of perfect income equality (Gini coefficient closer to 1) indicates lower income equality
- examples of countries with a relatively equal (e.g. Sweden, Denmark) and relatively unequal (e.g. Brazil) distribution of income.
A large number of candidates were unable to correctly label the axes of the diagram showing the Lorenz curve. Often they were labelled back to front, meaning that the Lorenz curve was then incorrectly drawn. Many candidates struggled to clearly explain how the Gini coefficient is derived from the information illustrated in the diagram. However, there were also candidates who were very clear in their explanations and who were also able to draw on actual Gini coefficient values for countries. Such responses were often, very well explained.
