Economics · Statistics and Econometrics
Which of the following statements are true about the Gini Coefficient? (i) The Gini coefficient equals the area between the line of perfect equality and the Lorenz curve divided by the total area under the line of perfect equality. (ii) Complete equality is represented by a 45° diagonal line where the Gini coefficient is 0. (iii) A coefficient of 1 (or 100%) indicates absolute inequality in income or wealth distribution. (iv) In theory, the Gini coefficient can exceed 1 (or 100%) if net negative wealth or income is present.
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- 1All (i), (ii), (iii) and (iv) are correct✓
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- 3Only (i), (iii) and (iv)
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All (i), (ii), (iii) and (iv) are correct
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