The Gini coefficient is a measure of income inequality within a population, with values ranging from 0% (perfect equality) to 100% (perfect inequality). A Gini coefficient cannot exceed 100% or be negative.
Given the need to compare Country A and Country B, where Country A has greater measured income inequality than Country B, we want to identify valid Gini coefficients.
Let's analyze the provided options:
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Country A has a Gini coefficient of 25% and Country B has a Gini coefficient of 74%: This is possible, as 74% is greater than 25%. However, this contradicts the statement that Country A has greater inequality.
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Country A has a Gini coefficient of 122% and Country B has a Gini coefficient of 93%: This is invalid, as Gini coefficients cannot exceed 100%.
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Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%: This is valid and supports the idea that Country A has greater inequality (82% > 38%).
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Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%: This is invalid as Gini coefficients cannot be negative.
Therefore, the only correct statement that describes the Gini coefficients of both countries, with the condition that Country A has greater income inequality than Country B, is:
Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.
11 answers