In which of the following scenarios would the Gini coefficient measure zero?
a. People earn the same income.
b. John receives a wage of $1 per hour.
c. The king ends up with all the nation's income.
d. There is a one-to-one ratio of income to population.
e. 100 percent of the income is held by 100 percent of the population.
A
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In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. If there is no Ricardo-Barro effect and the government now runs a balanced budget,
A) the interest rate will increase from 4 percent to 6 percent. B) there is a surplus of investment funds and the interest rate falls to 4 percent. C) there is shortage of investment funds of $0.4 trillion. D) the equilibrium interest rate is 6 percent and investment is $1.6 trillion. E) the equilibrium interest rate is 4 percent and investment is $1.8 trillion.
If the prices of goods and services were expressed in terms of coconuts, then coconuts would be serving as a
A) medium of exchange. B) store of value. C) standard of value. D) fiat money.