If the Gini coefficient has risen then
A) the mean and median levels of income have risen at the same rate.
B) the mean level of income has risen faster than the median.
C) the median level of income has risen faster than the mean.
D) the mean and median levels of income have fallen at the same rate.

Question

Quizplus · Accepted Answer

The Gini coefficient measures income inequality, so if it has risen, it means that the distribution of income has become more unequal. Generally, this implies that the mean level of income has risen faster than the median level of income. This is because the mean is more affected by extreme values (like high incomes of the rich), while the median is a more robust measure of central tendency that is not skewed by outliers. Therefore, the answer is B.

If the Gini Coefficient Has Risen Then