The Gini ratio equals the ratio of the area to the A, between the line of equali
ID: 1124171 • Letter: T
Question
The Gini ratio equals the ratio of the area to the A, between the line of equality and the Lorenz curve; entire area beneath the line of equality B. between the line of equality and the Lorenz curve; area under the Lorenz curve ° C. under the Lorenz curve: area between the line of equality and the Lorenz curve 0 D. under the Lorenz curve; entire area beneath the line of equality Which of the following statements is correct about the Gini coefficient? 0 A, A Gini coefficient of zero implies perfect income inequality (this means most unequal distribution) B. When the Gini coefficient is one, the Lorenz curve overlaps the line of perfect income equality ° C. A decrease in the Gini coefficient implies an improvement in income distribution 0 D. As economies grow, the Gini coefficient increases.Explanation / Answer
1. The Gini ratio equals the ratio of the area ________ to _________.
A) between the line of equality and the Lorenz curve; entire area beneath the line of equality
The Gini coefficinet is mathematically defined on the basis of Lorenz curve therefore the Gini ratio equals the ratio of the are between the line of equality and the Lorenz curve to the entire area under the equality line.
2.Which of the following statements is correct about the Gini Coefficient?
B) when the Gini coefficient is one, the Lorenz curve overlaps the line of perfect income equality.
3.Which of the following is not an entry barrier created by firms with market power?
A) Technological superiority
Each and every company has to be techologically sound to sustain in the market. If a company is already in power in the market then it has to update itself technologically. So if any technologically superior company comes into market that cannot be a barrier.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.