Gini Coefficient or Gini Ratio can be associated with which one of the

Gini Coefficient or Gini Ratio can be associated with which one of the following measurements in an economy ?

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Rate of inflation

Poverty index

Income inequality

Personal income

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UPSC CDS-2 – 2019

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The Gini Coefficient or Gini Ratio is a statistical measure of dispersion used to represent the income or wealth distribution within a nation or a social group. It is primarily associated with measuring income inequality (C). A Gini coefficient of 0 represents perfect income equality (everyone has the same income), while a coefficient of 1 (or 100%) represents perfect inequality (one person has all the income, and everyone else has none).

The Gini coefficient quantifies the degree of income or wealth inequality on a scale from 0 to 1.

While inequality is related to poverty (B) and overall economic conditions, the Gini coefficient specifically measures the *distribution* of income/wealth, not the absolute level of poverty or personal income (D), nor the rate of inflation (A). It is often derived from the Lorenz curve, which plots the proportion of total income earned by the bottom x% of the population.

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