Asked by Lindani Skhosana on Jun 09, 2024
Verified
The ________ is a commonly used measure of the degree of inequality in an income distribution.
A) Herfindahl-Hirschman index
B) Gini coefficient
C) Lorenz curve
D) utility possibility frontier
Gini Coefficient
An indicator of how unevenly income is distributed in a population, with 0 representing complete equality and 1 signifying absolute inequality.
- Understand the principles and consequences of applying the Lorenz curve and Gini coefficient in the analysis of income dispersion.
Verified Answer
BM
Baylor MilesJun 11, 2024
Final Answer :
B
Explanation :
The Gini coefficient is a measure that quantifies income inequality within a nation or a social group. It is calculated based on the differences in income among individuals or households, with a value of 0 representing perfect equality (everyone has the same income) and a value of 1 indicating perfect inequality (one person has all the income, and everyone else has none).
Learning Objectives
- Understand the principles and consequences of applying the Lorenz curve and Gini coefficient in the analysis of income dispersion.