# Gini coefficient measures which of the following? Gini coefficient me

| Gini coefficient measures which of the following?

A. Level of financial burden on economy

B. Structural inefficiencies in economy

C. Inequality in economy

D. Credit rating of institutions

### Right Answer is: C

#### SOLUTION

Gini coefficient measures the **inequality in economy**.

• The coefficient ranges from zero to one, with zero representing perfect equality and one showing perfect inequality.

• There are many ways to measure it. Two popular ways are those based on pre-tax (or market) income and disposable income.

• **Rise** in gini coefficient indicates that government policies are **not inclusive** and may benefit rich instead of poor.

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Gini coefficient measures which of the following?

Gini coefficient me