Country a Has a Gini Coefficient of 0

question 27

Multiple Choice

Country A has a Gini coefficient of 0.5 and country B has a Gini coefficient of 0.7. It follows that

• A)there is greater income inequality in country A than B.
• B)there is greater income inequality in country B than A.
• C)it is possible for the Lorenz curve in country A is the same as the Lorenz curve in country B.
• D)it is possible that the adjusted Gini coefficient in country A is equal to the Gini coefficient in country B.

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Definitions:

Demand D1

This represents a specific demand curve in economic analysis, showing the relationship between the price of a good and the quantity demanded.

Supply S2

Represents a shift in the supply curve in the market, indicating a change in the quantity of goods that suppliers are willing to produce and sell.

Equilibrium Wage

The rate of pay where the demand for labor from employers is equal to the labor supply from workers.

Unions

Organizations formed by workers to protect their rights and interests, often engaging in collective bargaining with employers.