Gini Coefficient or Gini Ratio can be associated with which one of the following measurements in an economy ?
[amp_mcq option1=”Rate of inflation” option2=”Poverty index” option3=”Income inequality” option4=”Personal income” correct=”option3″]
This question was previously asked in
UPSC CDS-2 – 2019
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.