A Gini Index of One Indicates That

question 57

Multiple Choice

A Gini index of one indicates that:

• A)every household in the country earns very different amounts of money
• B)every adult in the country earns the same amount of money
• C)every household in the country earns the same amount of money
• D)a single household earns the entire national income
• E)we cannot know how the national income is earned in a country

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Definitions:

Cost-Benefits Analysts

Professionals who evaluate the economic advantages and disadvantages of a decision by comparing the costs of an action to its benefits.

Price Signals

Price signals are indicators arising from the fluctuation in the price of goods or services, which reflect supply and demand dynamics and guide economic decisions.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by everyone and one person's use does not diminish another's.

Patent System

A legal framework that grants inventors exclusive rights to their innovations for a set period of time, encouraging innovation and investment in new ideas.