What does the Gini coefficient measure?
A)The rate of growth of income inequality over time.
B)The degree of inequality in an income distribution.
C)The correlation coefficient between income and education.
D)The covariance of income and education.
E)The degree of tax incidence paid by poor workers.

Question

Quizplus · Accepted Answer

The Gini coefficient measures the degree of inequality in an income distribution. It is a measure of the relative concentration of income among a society's citizens. The coefficient ranges from 0 to 1, with 0 indicating perfect equality (everyone earns the same amount) and 1 indicating perfect inequality (one person earns all the income).

What Does the Gini Coefficient Measure