The Gini Coefficient Is Computed by Dividing the Area

question 2

Multiple Choice

The Gini coefficient is computed by dividing the area

• A)between the line of perfect income equality and the actual Lorenz curve by the area below the Lorenz curve.
• B)below the Lorenz curve by the total area below the line of perfect income equality.
• C)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)above the line of perfect income equality by 5.

---

Definitions:

Perceived Trustworthy

The extent to which a person or entity is believed to be reliable, honest, and deserving of trust.

Initiation Fee

A charge or payment required for beginning membership or participation in a club, organization, or program.

Honour Society

An organization that recognizes excellence among peers; often in academic or professional contexts.

Elaboration Likelihood Model

A theory in social psychology that proposes two routes to persuasion: the central route and the peripheral route, based on the degree of thought and cognitive processing involved.