Question

suppose that the gini coefficient in costa rica is 0.35 and is 0.47 in the united states. based on this information only, which of the following is true? a) the income distribution in costa rica is more equal than in the united states b) the income distribution in costa rica is less equal than in the united states c) income levels in costa rica are higher on average than in the united states d) income levels in costa rica are lower on average than in the united states

Answer 1

Assume that in Costa Rica and the US, the Gini coefficients are 0.35 and 0.47, respectively. It is true that the Gini coefficient is a gauge of the income distribution based solely on this information.

The distribution of income is perfectly equal in a society with a Gini score of 0. The discrepancy is greater the higher the number 0 is. A score of 1.0 (or 100) denotes complete inequality, in which there is only one source of income.

The Gini index calculates the deviation from a perfectly equal distribution of income or consumption across people or households within an economy.

The Gini index ranges from 0 to 100, where 0 indicates perfect equality and 100 indicates complete disparity. Greater inequality is indicated by a higher Gini index, with high earners earning considerably bigger percentages of the total income of the population.

To learn more about Gini coefficients

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