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Which of the Following Statements Is True

Question 28

Multiple Choice

Which of the following statements is true?


A) If the Gini coefficient is large, then the space between the Lorenz curve and the line of perfect income equality will be small.
B) If the Gini coefficient is 1.00, then the Lorenz curve and the line of perfect income equality coincide.
C) If the government succeeds in decreasing income inequality, then the Gini coefficient will decrease.
D) If the Gini coefficient is 0.50, then one-half of the households earn one-half of the income, and the other half of the households earn the other half.

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