A Gini Coefficient of One Means That

question 148

Multiple Choice

A Gini coefficient of one means that

• A) income is distributed equally.
• B) one family has all the income and everyone else has nothing.
• C) all the income is received by the top 20% of families.
• D) the income is split equally between the top 20% and the rest of the distribution.

---

Definitions:

Marginal Cost

The supplementary cost derived from creating an additional good or service unit.

Pure Monopolist

An entity that is the sole provider of a product or service in a market, with no close substitutes, allowing for control over prices.

Nondiscriminating Pure Monopolist

A monopolistic market structure where a single seller offers a product to all consumers at the same price without price discrimination.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the additional value created beyond the opportunity cost.