Country A has a greater measured income inequality than Country B. Which of the following statements describes the Gini coefficients of both countries?
Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%.
Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.
Country A has a Gini coefficient of 122% and Country B has a Gini coefficient of 93%.
Country A has a Gini coefficient of 25% and Country B has a Gini coefficient of 74%.
Country A has a Gini coefficient of 82% and Country B has a Gini coefficient of 38%.
The correct statement is:
Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%.
To determine which statement describes the Gini coefficients of both countries, we need to understand what the Gini coefficient represents. The Gini coefficient is a measure of income inequality within a country. It ranges from 0% to 100%, where 0% represents perfect equality (everyone has the same income) and 100% represents maximum inequality (one person has all the income).
In this case, we are comparing the income inequality between Country A and Country B. The statement that best describes the Gini coefficients for both countries is:
"Country A has a Gini coefficient of 93% and Country B has a Gini coefficient of -12%."
This is because a Gini coefficient cannot be negative. The Gini coefficient is always a positive value between 0% and 100%. Therefore, the other three options can be ruled out.