The Gini Coefficient Is Measured by

question 185

Multiple Choice

The Gini coefficient is measured by

• A)summing up the cumulative income percentages on the Lorenz curve.
• B)summing up the total income earned by the population and dividing by the size of the population.
• C)using the formula: area between perfect inequality and Lorenz curve ÷ area between the line of perfect equality to the Lorenz curve.
• D)using the formula: area between the line of perfect equality and the Lorenz curve ÷ the area under the line of perfect equality.

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Definitions:

Pollution

The contamination of the natural environment by harmful substances or energies, which can affect air, water, and land negatively and pose risks to human health and ecosystems.

Marginal Benefit

The boost in utility or enjoyment derived from the additional consumption of a unit of a good or service.

Government Intervention

Actions taken by a government to affect the economy in various ways, such as through regulations, taxes, subsidies, or direct provision of goods and services.

Beneficiaries

Individuals or groups that receive benefits or advantages from something, typically from a trust, insurance policy, or a program.