The most commonly used measure of income inequality is the:
A) Gross National Product
B) Gini Index
C) Quality of Life Index
D) Market Basket Measure

Question

Quizplus · Accepted Answer

The Gini Index measures income inequality by calculating the ratio of the area between the Lorenz curve (which shows the actual distribution of income) and the line of perfect equality (which represents a completely equal distribution of income) to the total area below the line of perfect equality. A higher Gini Index score indicates greater income inequality.

The Most Commonly Used Measure of Income Inequality Is The