Question

all gini coefficients must lie between 0 and 1. the lower the value,

a. the greater the degree of poverty.
b. the more unequal the income distribution.
c. the closer the income distribution is to being equal.
d. the lower the degree of poverty according to the federal governments definition of poverty.

Explanation:

The Gini coefficient is a measure of income inequality. A value of 0 represents perfect equality (everyone has the same income), and a value of 1 represents perfect inequality (one person has all the income). So, a lower Gini coefficient means the income distribution is closer to being equal. Option A is incorrect because the Gini coefficient measures income inequality, not poverty. Option B is the opposite of what a low Gini coefficient means. Option D is also incorrect as the Gini coefficient is not directly related to the federal government's poverty definition in terms of degree of poverty.

Answer:

C. the closer the income distribution is to being equal.