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.

---

Definitions:

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company.

Cash Collections

The total amount of money received by a company from its various activities, including sales, services, and financing, over a specific period.

Cost of Goods Sold

Costs directly associated with manufacturing goods a company sells, such as materials and labor expenses.