Country A has a greater measured income inequality than Country B. Which of the following statements describes the Gini coefficients of both countries? (1 point)

Responses

Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%.
Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%.

Country A has a Gini coefficient of 122% and Country B has a Gini coefficient of 93%.
Country A has a Gini coefficient of 122% and Country B has a Gini coefficient of 93%.

Country A has a Gini coefficient of 25% and Country B has a Gini coefficient of 74%.
Country A has a Gini coefficient of 25% and Country B has a Gini coefficient of 74%.

Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.
Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.

1 answer

To assess the Gini coefficients based on the information that Country A has greater measured income inequality than Country B, we can conclude that the Gini coefficient for Country A must be higher than that of Country B.

The Gini coefficient ranges from 0% (perfect equality) to 100% (maximum inequality). Therefore, it's important to note that coefficients cannot be negative or exceed 100%.

Now, let's look at the given options:

  1. Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%. (Invalid since Gini coefficients cannot be negative)

  2. Country A has a Gini coefficient of 122% and Country B has a Gini coefficient of 93%. (Invalid since Gini coefficients cannot exceed 100%)

  3. Country A has a Gini coefficient of 25% and Country B has a Gini coefficient of 74%. (Invalid since 25% is less than 74%)

  4. Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%. (Valid since 82% is greater than 38%)

Thus, the correct statement describing the Gini coefficients of both countries is:

Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.