Which of the Following Does Not Describe the Gini Index

question 13

Multiple Choice

Which of the following does not describe the Gini index?

• A) It is a measure of income inequality.
• B) It is related to the number of unhealthy days in U.S. states.
• C) It varies across states in the United States.
• D) It ranges from 1 to 2.
• E) It represents complete income inequality when it is 1.

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Definitions:

MC

Short for marginal cost, it represents the change in total cost that arises when the quantity produced is incremented by one unit.

Herfindahl Index

An economic measure of market concentration, calculated by summing the squares of the market shares of all competitors within an industry.

Industry Concentration

A measure of the extent to which a small number of firms dominate the total production, sales, or market share in an industry.

Elastic

A measure in economics indicating how much the demand or supply of a good changes in response to a change in price.