What does a Gini coefficient value of one signify?

Multiple choice question for Income Inequality. Select an option, then review the explanation below.

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The highest 20% earn all the income in the population.Income is shared evenly among everyone.Income is divided equally between the top 20% and the remaining 80%.A single household possesses all the income, while everyone else has none.

Explanation

A Gini coefficient of one indicates complete inequality, meaning one family holds all the income and no one else has any.

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?

What does a Gini coefficient value of one signify?

Explanation

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