As the Value of the Gini Coefficient Approaches Zero

question 47

Multiple Choice

As the value of the Gini coefficient approaches zero

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

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Definitions:

Fixed-Income Securities

Investments that provide regular income payments, such as bonds or treasury bills, with predetermined interest rates.

Money Market Securities

These are short-term debt instruments, typically with maturities of less than one year, used by governments, financial institutions, and corporations to finance their short-term cash needs.

Net Asset Value

The value of an entity's assets minus the value of its liabilities, often used in the context of mutual and exchange-traded funds.

Dividend Income Distributions

Payments made by a corporation to its shareholders, often derived from the company's earnings, representing a share of the profits.