What does the Gini coefficient measure, and what does a value of 0 mean?
Answer and explanation
Correct answer: B. Income inequality
- Step 1: The Gini coefficient runs from 0 to 1. Step 2. At 0 everyone has the same income, and at 1 one person has everything. Answer: inequality, with 0 as equality. Why not the others: these describe other indicators.
Practise more Économie : croissance, marchés et politiques.
Free questions with an explanation for every one, and full timed French Baccalaureat mock tests.
More Économie : croissance, marchés et politiques questions
- What does gross domestic product (GDP) measure?
- What is inflation?
- Why do economists use real GDP rather than nominal GDP to compare growth over time?
- How is the unemployment rate calculated?
- When the price of a good rises by 10 percent and the quantity demanded falls by 20 percent, what is the price elasticity of demand and how i…
- In a competitive market, what happens at the equilibrium price?