Economics · Atkinson Index
Consider the following statements regarding the measurement of inequality: Statement 1: The Atkinson Index is a normative measure of inequality that incorporates an 'inequality aversion parameter'. Statement 2: In the Atkinson Index, a higher inequality aversion parameter places less weight on income transfers to the poorest individuals. Choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Statement 1 is false, but Statement 2 is true.
- 2Both statements are false.
- 3Both statements are true.
- 4Statement 1 is true, but Statement 2 is false.✓
Correct answer
Statement 1 is true, but Statement 2 is false.
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