In Making Comparisons of Personal Income Among Countries,care Must Be
In making comparisons of personal income among countries,care must be exercised because in poor countries much of what is produced does not pass through markets and thus does not get counted in the nation's income.
The greater the area between the Lorenz curve and the diagonal line of absolute equality,the more inequality exists.
The values of the Gini coefficient range from zero to +1.
The principle of horizontal equity is violated if two people who earn the same amount of income actually pay a different amount in taxes.