Steven Wants to Compare the Degree of Economic Inequality Between

question 18

Multiple Choice

Steven wants to compare the degree of economic inequality between his country and a wealthy,developed democracy.The measure he uses yields a score of 68 for his country and a score of 12 for the wealthy democracy.What measurement did he most likely use?

• A) GDP
• B) GDP per capita
• C) Gini index
• D) Human Development Index

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Definitions:

Output

The total amount of goods and services produced by an economic system, company, or sector within a certain period.

Marginal Cost

The cost incurred by producing one additional unit of a good or service, which varies depending on the level of production.

Profit

The financial gain accrued from a business activity when total revenues exceed total expenses.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.