-Which Gini Coefficient Represents the Highest Level of Income Equality

question 142

Multiple Choice

$\begin{array}{|c|c|}\hline \text { Year } & \text { Gini Coefficient } \\\hline 1 & 0.38 \\\hline 2 & 0.36 \\\hline 3 & 0.43 \\\hline 4 & 0.42 \\\hline\end{array}$
-Which Gini coefficient represents the highest level of income equality?

• A) 0.21
• B) 0.34
• C) 0.77
• D) 0.98

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Definitions:

Decrease in Income

A reduction in the amount of money received by an individual or entity, which can affect consumption and saving behaviors.

Downward-sloping Demand Curve

A graph showing that the quantity demanded of a good or service varies inversely with its price, other things being equal.

Equilibrium Price

The price at which the quantity of a product demanded by consumers equals the quantity supplied by producers.

Consumer Surplus

The divergence between the total payment consumers are willing to make for a product or service and what they really pay.