The Gini Ratio Is Calculated by Dividing the Area Between

question 18

Multiple Choice

The Gini ratio is calculated by dividing the area between the Lorenz curve and the diagonal by the

• A)remaining area below the diagonal.
• B)total area below the diagonal.
• C)total area of the box or rectangle.
• D)remaining area of the box or rectangle.

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Definitions:

Mutual Gain

A situation or outcome in which all parties involved benefit or profit from the arrangement or transaction.

Potential Exchange

The possibility of trading goods, services, or other items of value between parties.

Trade

The exchange of goods, services, or both between two or more parties.

Negotiate

The process of discussing something with someone in order to reach a mutually agreed conclusion.