Question : The Gini coefficient is a measure of:
Option 1: Economic growth
Option 2: Inflation rate
Option 3: Income inequality
Option 4: Unemployment rate
Correct Answer: Income inequality
Solution : The correct answer is (c) Income inequality.
The Gini coefficient is a measure of income inequality within a population. It quantifies the extent to which income is unevenly distributed among individuals or households in a given society.
The Gini coefficient is typically calculated by comparing the Lorenz curve (which represents the actual distribution of income) with the line of perfect equality (which represents a situation of perfect income equality). The coefficient ranges from 0 to 1, where 0 indicates perfect equality (all individuals have the same income) and 1 indicates maximum inequality (all income is concentrated in a single individual or group).
Related Questions
Trending Articles/News
