Question

Demonstrate how the Gini coefficient measures the inequality of the in- come distribution. What can it tell us about poverty?

Answer 1

Coin: Coefficient is additionally referred to as Gini Index it represent the income inequality, or wealth inequality within a nation. It wats devloped by Italian Statistician "Corrado Gini" within the year 1921.

Gini Coefficient shows the income distribution or we will say that it measure income distribution on the size between 0 and 1. If everyone have exactly equal income within the Country then the Gini Coefficient is O. and if

one person of a rustic earned nothing then income Gini Coefficient is 1. 0 represent perfect equality and 1 represent perfect inequality of income distribution.

Proverty is typically defined because the reach which individual during a Society or community fall below the quality of living.

Gini Coefficient play an important role within the income inequality measurement of the poor people live below Standard of living who are krown as poor the Gini coefficient help the govt to understand the amount of proverty level increase or decrease within the country . Gini coefficient says that if it rises and GDP rises then the proverty might not be improving for the bulk of the population.