Country A has a Gini coefficient of 0.5 and country B has a Gini coefficient of 0.7.It follows that

Question

Quizplus · Accepted Answer

The Gini coefficient is a measure of income inequality, with values ranging from 0 to 1. A value of 0 represents perfect equality (where everyone has the same income) and a value of 1 represents maximal inequality (where one person has all the income and everyone else has zero). Therefore, a higher Gini coefficient indicates greater income inequality. Since country B has a higher Gini coefficient than country A, it follows that there is greater income inequality in country B than A. Option A is incorrect because it implies the opposite. Option C is incorrect because the Gini coefficients are different and therefore the corresponding Lorenz curves must be different. Option D is incorrect because adjusted Gini coefficients are not discussed in the question.

Country a Has a Gini Coefficient of 0