What does the Gini coefficient represent?

Show Answers

The ratio comparing the share of total income earned by the richest 20% of households to that earned by the poorest 20%The most frequently used graphical method to display income distributionA popular metric used to quantify income inequality levelsA standard indicator measuring the extent of unfairness in income allocation

Explanation

Option A correctly defines the Gini coefficient as the ratio of the income share of the top 20% of families to that of the bottom 20%. Options B, C, and D describe related concepts but do not accurately define the Gini coefficient.