Economics Income Inequality Questions
The Gini coefficient is a measure of income inequality within a population. It is a statistical measure ranging from 0 to 1, where 0 represents perfect equality (all individuals have the same income) and 1 represents maximum inequality (one individual has all the income). The Gini coefficient is calculated by plotting the cumulative share of income against the cumulative share of the population and measuring the area between the line of perfect equality and the actual income distribution curve.