If Income in a Country Is Equally Distributed Across the Population

question 58

Multiple Choice

If income in a country is equally distributed across the population, then

• A)the Gini coefficient is equal to 0.
• B)the Gini coefficient is equal to 1.
• C)the Lorenz curve is L-shaped.
• D)the Gini coefficient is undefined.
• E)the Gini coefficient is equal to 1/2.

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Definitions:

Shipping Costs

Expenses associated with the transportation of goods from one location to another, often influencing pricing and supply chain decisions.

Fuel

Substances used to produce energy, especially to power engines, heating, or produce electricity.

Average Total Cost

The average expense for each unit of output, calculated by dividing the overall production cost by the total number of units produced.

Average Fixed Cost

The cost that remains constant per unit of output as total production increases or decreases.