Using Gini Coefficient Measures Instead of the Ratio of Average

question 26

Multiple Choice

Using Gini coefficient measures instead of the ratio of average incomes in the world's richest country to the average income in the world's poorest country,Oatley concludes that

• A) during the last 30 years global income inequality has begun to increase.
• B) global inequality is much greater than domestic income inequality in even the most unequal countries.
• C) global income inequality increased slowly but erratically between 1820 and 1970.
• D) since 1980, the world's poorest societies have grown as fast as the richest countries.
• E) between 1960 and 1980, the world's poorest societies grew faster than the world's richest.

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Definitions:

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume, such as materials and labor costs.

High-Low Data

A method used in various analyses that involves observing the highest and lowest data points to assess trends or calculate variables.

Units Produced

The total quantity of units manufactured by a company during a specific period.

Relevant Range

The relevant range refers to the span of activity or volume within which the assumptions about cost behavior hold true.