What Happens as the Value of the Gini Coefficient Approaches

question 79

Multiple Choice

What happens as the value of the Gini coefficient approaches zero?

• A)Income distribution becomes more unequal.
• B)Income distribution becomes less unequal.
• C)The percentage of the population under the poverty line decreases.
• D)The percentage of the population under the poverty line increases.

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Definitions:

Production Cost

Represents the total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead costs.

P-value

A statistical measure indicating the probability of obtaining the observed results, or more extreme results, assuming the null hypothesis is true.

Rejection Region

The range of values in a statistical test for which the null hypothesis is rejected if the test statistic falls within this region.

Critical Value

A point on a statistical distribution representing a threshold at which the null hypothesis is either rejected or not rejected.