According to the World Bank, the Gini coefficient for India was 0.368 in 2004-05 and 0.513 for Argentina in 2004. Based on this data,
A) India has a more equal distribution of income than Argentina.
B) Argentina has a more equal distribution of income than India.
C) The top 20% of the population has 36.8% of the income in India and 51.3% in Argentina.
D) The bottom 20% of the population has 36.8% of the income in India and 51.3% in Argentina.

Question

Quizplus · Accepted Answer

The Gini coefficient measures the degree of income inequality in a country, with a score of 0 representing perfect equality and a score of 1 representing perfect inequality where one person has all the income. Based on the scores, India has a more equal distribution of income than Argentina, as 0.368 is closer to 0 than 0.513. The choices C and D are incorrect as they incorrectly state that each country has the same percentage of income held by the top and bottom 20% of the population.

According to the World Bank, the Gini Coefficient for India