Asked by Channce Olivacce on May 21, 2024
Verified
The Gini coefficient for North American countries is between 0.3 and 0.4, and for Latin American countries it is between 0.4 and 0.5. What does this tell us about income inequality in these regions?
A) Income inequality in Latin America is growing.
B) Income inequality in North America is decreasing.
C) Income inequality is greater in Latin America than in North America.
D) Income inequality is greater in North America than in Latin America.
Gini Coefficient
A measure of statistical dispersion intended to represent the income inequality or wealth inequality within a nation or any other group of people.
Income Inequality
The unequal distribution of income among individuals or groups within a society, leading to economic and social disparities.
- Discern the impact that governmental measures and tax systems have on the imbalance of income distribution.
Verified Answer
EL
Edwin LeBronMay 23, 2024
Final Answer :
C
Explanation :
The Gini coefficient is a measure of income inequality within a population, ranging from 0 (perfect equality) to 1 (perfect inequality). A higher Gini coefficient indicates greater inequality. Since Latin American countries have a higher Gini coefficient range (0.4 to 0.5) compared to North American countries (0.3 to 0.4), it indicates that income inequality is greater in Latin America than in North America.
Learning Objectives
- Discern the impact that governmental measures and tax systems have on the imbalance of income distribution.
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