Single Answer MCQ
Q-00045290
Compared to average income, why is the Gini coefficient often used for comparisons?
1
It accounts for total income
2
It measures income distribution
3
It is easier to calculate
4
It represents population size
Answer and Solution
Answer
B. It measures income distribution
Solution:
The Gini coefficient is used in comparisons because it measures income distribution, providing insights into income inequality, which average income cannot reveal.
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