What Does the Gini Coefficient Measure

question 30

Multiple Choice

What does the Gini coefficient measure?

• A)The rate of growth of income inequality over time.
• B)The degree of inequality in an income distribution.
• C)The correlation coefficient between income and education.
• D)The covariance of income and education.
• E)The degree of tax incidence paid by poor workers.

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Definitions:

Cash Outflows

Money spent or costs incurred by a business or individual, resulting in a decrease in cash reserves.

Straight-Line Depreciation

A manner for spreading out the cost of a tangible asset across its useful life in regular yearly installments.

Income Taxes

Income taxes are taxes imposed by governments on the income generated by businesses and individuals within their jurisdiction.

Operating Cash Inflow

Money generated from a company's regular business operations, indicating its capacity to maintain and grow operations.