Asked by george brown on Jun 25, 2024
Verified
A Gini coefficient of zero means that
A) the income is equally distributed.
B) one person has all the income and everyone else has nothing.
C) all the income is received by the top 20% of families.
D) the income is split equally between the top 20% and the rest of the distribution.
Gini Coefficient
A measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality).
- Familiarize yourself with the essence and repercussions of the Lorenz curve and Gini coefficient in the examination of income distribution patterns.
Verified Answer
SU
Steven UnderwoodJun 25, 2024
Final Answer :
A
Explanation :
The Gini coefficient is a measure of income inequality within a population, ranging from 0 to 1, where 0 represents perfect equality (everyone has the same income) and 1 represents perfect inequality (one person has all the income). Therefore, a Gini coefficient of zero means that the income is equally distributed among the population.
Learning Objectives
- Familiarize yourself with the essence and repercussions of the Lorenz curve and Gini coefficient in the examination of income distribution patterns.