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

1 answer

The Gini coefficient is a measure of income inequality that ranges from 0 to 100%, where 0% represents perfect equality (everyone has the same income) and 100% represents perfect inequality (one person has all the income and everyone else has none).

Given that Country A has a greater measured income inequality than Country B, we expect Country A to have a Gini coefficient that is higher than that of Country B.

Let's analyze the options:

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

    • Here, 82% > 38%. This is consistent with the statement that Country A has greater income inequality.
  2. Country A has a Gini coefficient of 122% and Country B has a Gini coefficient of 93%.

    • A Gini coefficient cannot exceed 100%, so this option is not valid.
  3. Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%.

    • A Gini coefficient cannot be negative, so this option is also not valid.
  4. Country A has a Gini coefficient of 25% and Country B has a Gini coefficient of 74%.

    • Here, 25% < 74%, which contradicts the statement that Country A has greater income inequality.

Thus, the only valid response that describes the Gini coefficients correctly is:

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