What is a Gini coefficient?
What will be an ideal response?
A Gini coefficient is a commonly used measure of inequality of income derived from a Lorenz curve. It can range from zero to one. The coefficient is the ratio of the area between the Lorenz curve and the 45-degree to the area below the line of equality.
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According to the figure above, which point or points correspond to full employment?
A) only point a B) only point b C) only point c D) points a and b E) points a, b, and c
Suppose that installing an overhead pedestrian walkway would cost a college town $150,000 . The walkway is expected to reduce the risk of fatality by 3 percent, and the cost of a human life is estimated at $10 million. The town should
a. install the walkway because the estimated benefit is twice the cost. b. install the walkway because the estimated benefit equals the cost. c. not install the walkway, since the cost is twice the estimated benefit. d. install the walkway, since the cost of even a single life is too great not to take action.