Asked by Alicia Lankford on Jun 30, 2024
Verified
Klaus is a dictator who rules Nixedia, a country in Eastern Europe. All the wealth in the country is owned by Klaus. Given this information, it can be said that Nixedia has a Gini coefficient of _____.
A) zero
B) one
C) hundred
D) fifty
Gini Coefficient
A measure used to express the distribution of income or wealth within a population, indicating inequality levels.
Wealth
Wealth represents the abundance of valuable financial assets or material possessions, which can be accumulated, saved, and invested over time to increase an individual's or entity's financial security and economic standing.
- Discern metrics for evaluating economic welfare and division, such as the Gini coefficient.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
B
Explanation :
The Gini coefficient measures income or wealth inequality within a nation, ranging from 0 (perfect equality) to 1 (one person has all the wealth). Since Klaus owns all the wealth, Nixedia's Gini coefficient would be 1, indicating maximum inequality.
Learning Objectives
- Discern metrics for evaluating economic welfare and division, such as the Gini coefficient.
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