Income inequality can be measured in two ways: by measuring the income of the different strata of the population and by using the Gini coefficient.

Question

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Income inequality is often measured by comparing the income of different strata of the population (e.g., quintiles or deciles) and by calculating the Gini coefficient, which quantifies income inequality on a scale from 0 to 1, where 0 represents perfect equality and 1 represents perfect inequality.

Income Inequality Can Be Measured in Two Ways: by Measuring