Table 20-5 *A Gini Coefficient Is a Commonly Used Measure of Income

question 280

Multiple Choice

Table 20-5

*A Gini coefficient is a commonly used measure of income inequality, with values between 0 and 1 (0 corresponds to perfect equality whereby everyone has exactly the same income, and 1 corresponds to perfect inequality where one person has all the income, while everyone else has zero income) .
Source: The World Bank
-Refer to Table 20-5.Which of the following statements is correct?

• A) Latvia has the most unequal distribution of income.
• B) France has a more equal distribution of income than Italy.
• C) Sweden has the most equal distribution of income.
• D) All of the above are correct.

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Definitions:

Central Planning

An economic system where decisions regarding production and investment are embodied in a comprehensive plan formulated by a central authority, typically the government.

Laissez-faire

Laissez-faire is an economic philosophy advocating minimal government intervention in the business affairs of private individuals and enterprises.

Command Economies

Economic systems where the government or central authority controls all major aspects of production and distribution of goods and services.

North Korea

An East Asian country officially known as the Democratic People's Republic of Korea, noted for its centralized economy and autocratic government.