Question

suppose the united states has a gini coefficient of 0.4 and sweden has a gini coefficient of 0.25. which of the following statements is true?
a. income distribution is changing faster in the united states.
b. the distribution of income is more equal in the united states.
c. the distribution of income is more equal in the sweden.
d. without information on population, it is not possible to compare income distribution between countries.

Explanation:

The Gini coefficient measures income inequality. A lower Gini coefficient indicates more equal income distribution. Since Sweden's Gini coefficient (0.25) is lower than the United States' (0.4), Sweden has a more equal income distribution. Option A is incorrect as the Gini coefficient doesn't measure the speed of change. Option B is wrong because a higher Gini coefficient (US) means less equality. Option D is incorrect as the Gini coefficient itself is a measure of income distribution and can be compared between countries without population - specific information for this particular comparison of equality.

Answer:

C. The distribution of income is more equal in the Sweden.