TRUE OR FALSE WITH REASONS. If one person has all the income and everyone else has...

TRUE OR FALSE WITH REASONS.

If one person has all the income and everyone else has none, the Gini ratio is zero.

Answer:

Reason

Expert Solution

This statement is FALSE .

This is so because, when one person has all the income and everyone else has none , the Gini ratio is one.

In 1912 ,the Gini Ratio or Gini Index was developed and put forward by an Italian Statistician named Corrado Gini. The Gini Ratio is a measure of inequality of distribution of income (wealth distribution) across a population. It values lies between 0 and 1 .A higher Gini ratio means that there is greater inequality of distribution of income across the population , indicating higher percentage of total income of the population in the hands of few income earning individuals. Lower Gini ratio means there is less income inequality across the population . When the Gini ratio is 0 , it represents perfect income equality ,ie, each and everyone of the population have the same income. When the Gini Ratio is one , it represents perfect income inequality across the population , ie , one person has all the income , while everyone else in the population has zero income (no income).

Hence , the statement given in this question is FALSE .

Rahul Sunny answered 1 year ago

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