A statistical tool used to measure inequality is
A)the Lorenz curve.
B)the Gini coefficient.
C)the absolute poverty rate.
D)the relative poverty rate.

Question

Quizplus · Accepted Answer

The Gini coefficient is a commonly used statistical tool to measure inequality. It is based on the Lorenz curve, which plots the cumulative share of income or wealth held by different segments of the population. The Gini coefficient is a summary statistic that measures the extent to which the actual distribution of income or wealth deviates from a perfectly equal distribution, where the coefficient ranges from 0 (perfect equality) to 1 (perfect inequality). Therefore, the Gini coefficient can assess and compare the degree of inequality across different countries, regions, or time periods. The other options, such as the absolute and relative poverty rates, focus on the extent of deprivation or hardship experienced by individuals or households, rather than the overall inequality in the distribution of resources.

A Statistical Tool Used to Measure Inequality Is