Master The Gini Coefficient and The Lorenz Curve

1. What is the Gini Coefficient?

a. A numerical measure of the extent of income inequality.
b. A numerical measure of the extent of success of a country.
c. A diagrammatical way of representing income inequality.
d. A diagrammatical way of representing the success of a country.

2. What is the Lorenz Curve

a. A numerical measure of the extent of income inequality.
b. A numerical measure of the extent of success of a country.
c. A diagrammatical way of representing income inequality.
d. A diagrammatical way of representing the success of a country.

3. Which of the following Countries have the greatest income inequality?

a. Country A with a Gini Coefficient of 0.6
b. Country B with a Gini Coefficient of 0.75
c. Country C with a Gini Coefficient of 0.8
d. Country D with a Gini Coefficient of 0.9

4. Which of the following represents the Gini Coefficient?

a. The area between the Line of Absolute Income Equality and the Line of Absolute Income Inequality.
b. The area between the Lorenz Curve and the Line of Absolute Income Inequality.
c. The area between the Lorenz Curve and the Cumulative Percentage Income Recipients.
d. The area between the Lorenz Curve and the Line of Absolute Income Equality

5. At what angle is the Line of Absolute Income Equality drawn?

a. 90 Degrees
b. 45 Degrees
c. 40 Degrees
d. 180 Degrees

6. What is the Range of the Gini Coefficient?

a. 0 to 0.5
b. 0.5 to 2
c. 0 to 1
d. 1 to 2

7. The area between the Lorenz Curve and the Line of Absolute Income Inequality represents 0.6, what is the Gini Coefficient?

a. 0.6
b. 0.4
c. 1
d. 1.2

8. The area between the Lorenz Curve and the Line of Absolute Income Equality represents 0.75, what is the Gini Coefficient?

a. 0.75
b. 0.25
c. 1
d. 1.5

9. Country A has a Gini Coefficient of 0.85 and Country B has a Gini Coefficient of 0.15, which country has a more uneven distribution of income?

a. Country A
b. Country B
c. Both have an evenly distributed income
d. Both have a similar level on income inequality

10. What does the bottom 50% of recipients of income represent in a country with a highly uneven distribution of income?

a. They receive 50% of the cumulative percentage of total income.
b. They receive a small percentage of the cumulative percentage of total income compared to the upper 50% of recipients.
c. They receive 100% of the cumulative percentage of total income.
d. They receive a large percentage of the cumulative percentage of total income.

11. What does the y-axis represent in a diagram showing the Gini Coefficient and Lorenz Curve?

a. Perfect Equality
b. Perfect Inequality
c. Cumulative Percentage of Income Recipients
d. Cumulative Percentage of Total Income

12. What does the x-axis represent in a diagram showing the Gini Coefficient and Lorenz Curve?