Multiple Choice
A wealth gap is an economic difference between which of the following?
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16. Income Inequality and Poverty
Income Inequality in the USA and Worldwide
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The Gini ratio is a numerical measure of the:
A
percentage of population living below the poverty line
B
degree of income inequality within a population
C
rate of economic growth
D
average income level in a country
Verified step by step guidance1
Understand that the Gini ratio (or Gini coefficient) is a measure used in economics to quantify income inequality within a population.
Recall that the Gini ratio ranges from 0 to 1, where 0 represents perfect equality (everyone has the same income) and 1 represents perfect inequality (one person has all the income).
Recognize that the Gini ratio does not measure poverty levels, economic growth rates, or average income, but specifically focuses on how income is distributed among individuals or households.
Therefore, the Gini ratio is best described as a numerical measure of the degree of income inequality within a population.
Use this understanding to correctly identify the Gini ratio's purpose when analyzing economic data or answering related questions.
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