Discussion
The Gini coefficient provides a measure of :
Answer: B
The Gini coefficient measures the level of relative income inequality.
It is derived from the Lorenz curve: the ratio of the area between the line of perfect equality and the Lorenz curve to the whole area below the line of equality. It ranges from 0, when everyone has the same income, to 1, when one person has all of it. Because it compares shares, it measures relative inequality, unaffected by the overall level of income.
It does not measure poverty (a country can be equal and poor), disguised unemployment or growth. Those need head-count ratios, labour studies and national income figures respectively.
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