Figure 18-4

-Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25.Which of the following statements is true?
A)The distribution of income is more equal in the United States.
B)The distribution of income is more equal in the Sweden.
C)Income distribution is changing faster in the United States.
D)Without information on population, it is not possible to compare income distribution between countries.

Question

Figure 18-4
 
-Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25.Which of the following statements is true?
A)The distribution of income is more equal in the United States. 
B)The distribution of income is more equal in the Sweden. 
C)Income distribution is changing faster in the United States. 
D)Without information on population, it is not possible to compare income distribution between countries.

Quizplus · Accepted Answer

A lower Gini coefficient indicates a more equal distribution of income, so Sweden has a more equal distribution of income than the United States. Population information is not necessary to compare the income distribution based on the Gini coefficient. There is no information on income distribution changes, so choice C cannot be determined from the given information.

Figure 18-4 -Suppose the United States Has a Gini Coefficient of 0.4