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 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%.

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

1 answer

The Gini coefficient is a measure of income inequality within a country and ranges from 0% to 100%, where 0% indicates perfect equality (everyone has the same income) and 100% indicates perfect inequality (one person has all the income). Therefore, a Gini coefficient cannot be negative or exceed 100%.

Given your question, the only valid pair of Gini coefficients that aligns with the condition that Country A has greater income inequality than Country B while staying within the proper range (0% to 100%) is:

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

In this case, Country A (82%) has a greater level of income inequality than Country B (38%).

The other options include invalid Gini coefficient values such as -12% and over 100% (122%), which are not possible.