Economics • Economic BasicsEasy
What does the 'Gini Coefficient' measure when analyzing income distribution within an economy?
A. Absolute poverty level
B. Degree of income inequality✓ Correct Answer
C. Total national income per capita
D. Rate of inflation over time
💡 Solution & Explanation
The Gini coefficient is a widely accepted statistical metric scaled between zero and one, where zero represents complete income equality and one denotes absolute inequality within a population. Macroeconomic indicators like GDP per capita measure average economic output rather than the dispersion of wealth among households. Economy questions frequently pair the Gini coefficient with the Lorenz curve when assessing developmental inequality.
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