To determine the correct statements regarding the Gini coefficients of Country A and Country B, we need to know a few key facts about the Gini coefficient:
- The Gini coefficient ranges from 0% to 100% (or 0 to 1), where 0% indicates perfect equality (everyone has the same income) and 100% indicates perfect inequality (one person has all the income).
Given these facts, let’s analyze the responses:
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Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%.
- A Gini coefficient cannot be negative. Therefore, this option is invalid.
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Country A has a Gini coefficient of 25% and Country B has a Gini coefficient of 74%.
- This option states that Country A is more equal (lower Gini) than Country B (higher Gini), which means Country A does not have greater income inequality than Country B. This option is invalid.
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Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.
- Here, Country A (82%) has greater measured income inequality than Country B (38%), which is consistent with the question. This option could be valid.
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Country A has a Gini coefficient of 122% and Country B has a Gini coefficient of 93%.
- A Gini coefficient cannot exceed 100%. Therefore, this option is invalid.
Based on this analysis, the correct answer that describes the Gini coefficients of both countries is:
Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.
1 answer