Which one of the following statements about the Gini coefficient is not true?
A) It reflects the data shown in the Lorenz curve.
B) It equals zero when there is perfect equality.
C) It increases as income inequality increases.
D) It must fall when the amount of income in an economy increases.
E) It equals one when there is perfect inequality.

Question

Quizplus · Accepted Answer

The Gini coefficient is a measure of income inequality, not the total amount of income. An increase in the total income of an economy does not necessarily lead to a change in the Gini coefficient unless the distribution of that income changes in a way that affects inequality.

Which One of the Following Statements About the Gini Coefficient