Question

Gini coefficient is associated with which of the following measurements in an economy?

A Rate of inflation Correct Answer Incorrect Answer
B Poverty index Correct Answer Incorrect Answer
C Income inequality Correct Answer Incorrect Answer
D Personal income Correct Answer Incorrect Answer

Solution

• In economics, the Gini coefficient is used to measure the income inequality among the residents of a nation. • While a Gini Coefficient of 1 expresses maximum inequality, a Gini coefficient of zero expresses maximum equality. • In India, the rate of inflation is measured using the Consumer Price Index (CPI).

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