Question

Which statement accurately reflects Kerala's Gini coefficient trends in relation to economic phases?

1. Kerala's Gini coefficient declined slightly in both rural and urban areas between 1983 and 1987-88.
2. The downward trend in inequality continued until 1999-2000, marking the full impact of market-oriented growth.
3. All-India urban Gini values showed a consistent decline mirroring Kerala's trend during the initial post-reform period.
4. The data suggests that moderate economic growth is incompatible with moderated inequality, even within a liberalized framework.

• A. ii only
• B. None of these
• C. i only
• D. All

Answer 1

Answer:

C. i only

• Contrary to popular belief, the change in the distribution of total consumption expenditure between 1993-94 and 2004-05 reflects a clear trend of rising inequality in consumer expenditure (a proxy for income), highlighting the growing disparities during the neo-liberal policy period.

• To assess inequality levels across different phases of economic growth, Gini coefficients based on decile-wise consumer expenditure (as a proxy for income) are calculated for both Kerala and all-India, enabling a comparative analysis over time.