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- Subject
- Income Inequalityeconomics-mcqs › income-inequality
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What does a Gini coefficient of zero indicate?
Multiple choice question for Income Inequality. Select an option, then review the explanation below.
Explanation
Option A suggests equal income split only between the top 20% and others, which is incorrect. Option B describes total income held by one individual, which corresponds to a Gini coefficient of one. Option C correctly states that all income is held by the top 20%, reflecting extreme inequality. Option D describes perfectly equal income distribution, which corresponds to a Gini coefficient of zero, not option C.
More Income Inequality MCQs
Practice related questions from the same subject.
- 1.Which of the following best describes the Benazir Benefit Income Scheme?
- 2.Which category of tax does VAT best represent?
- 3.When a tax can be transferred, what determines the actual burden of the tax?
- 4.What does tax incidence refer to?
- 5.What does a progressive income tax system imply about the tax rate for individuals with higher earnings?