Match List I with List II and select the correct answer using the code given below the lists : List I (Curve) List II (Indication) A. Lorenz curve 1. Inflation and employment B. Phillips curve 2. Tax rates and tax revenue C. Engel curve 3. Ineality in the distribution of income or wealth D. Laffer curve 4. Income and proportion of expenditure on food

The matching of economic curves to their indications is as follows: The Lorenz curve (A) is a graphical representation used to measure inequality in the distribution of income or wealth within a population [2]. The Phillips curve (B) illustrates the inverse relationship and trade-off between inflation and unemployment [1]. The Engel curve (C) describes how household expenditure on a particular good, such as food, varies with changes in household income, reflecting Engel's Law [1]. Finally, the Laffer curve (D) represents the relationship between tax rates and the total tax revenue collected by the government, suggesting that optimal tax rates maximize revenue [3]. Therefore, the correct sequence is A-3, B-1, C-4, and D-2, which corresponds to option 3.

Sources

1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > 1. Lorenz Curve and Gini Coefficient > p. 280
2. [2] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 3: Poverty, Inequality and Unemployment > Lorenz Curve Explained > p. 45
3. [3] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > TAX ELASTICITY AND TAX BUOYANCY > p. 101