The Gini Coefficient Is Computed by Dividing the

question 88

Multiple Choice

The Gini coefficient is computed by dividing the

• A)area between the line of perfect income equality and the actual Lorenz curve by the area below the Lorenz curve.
• B)area below the Lorenz curve by the total area below the line of perfect equality.
• C)area between the line of perfect income equality and the actual Lorenz curve by the total triangular area below the line of perfect income equality.
• D)either a or b
• E)any of the above

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Definitions:

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services in an economy.

Unemployment and Inflation

Two key indicators in economics, where unemployment measures the percentage of the workforce that is jobless, and inflation indicates the rate at which the general level of prices for goods and services is rising.

Cost/Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives, used to determine options that provide the best approach to achieve benefits while preserving savings.

Expected Benefits

The anticipated advantages or positive outcomes that are predicted to result from a particular action or policy.