Question

What is the GINI-COEFFICIENT widely used for?

• A. Measuring economic growth
• B. Measuring income and consumption inequalities
• C. Calculating national debt
• D. Assessing market trends

Answer 1

Answer:

B. Measuring income and consumption inequalities

GINI-COEFFICIENT

• This is the widely used method to measure income and consumption inequalities.

• It measures the degree of concentration in the inequality of a variable in a distribution of its elements.

• It ranges in its limits between 0 and 1 where it assumes the value 'zero' when there is perfect equality in society.