As the value of the Gini coefficient approaches one,
A)income distribution becomes less unequal.
B)income distribution becomes more unequal.
C)the percentage of the population under the poverty line increases.
D)the percentage of the population under the poverty line decreases.

Question

Quizplus · Accepted Answer

The Gini coefficient measures the degree of income inequality in a society. It ranges from 0 to 1, with 0 indicating perfect equality (where everyone earns the same income) and 1 representing perfect inequality (where one person earns all the income). As the value of the Gini coefficient approaches one, it means that income distribution is becoming more unequal, with a greater concentration of income among a smaller percentage of the population. Therefore, as the Gini coefficient approaches one, the answer is B, which indicates that income distribution becomes more unequal.

As the Value of the Gini Coefficient Approaches One