economics easy MCQ

The 'Gini Coefficient' is a statistical measure primarily used in economics to represent:

  1. The rate of inflation over a decade
  2. The income or wealth inequality within a nation
  3. The efficiency of capital investments
  4. The balance of trade deficit

Answer: The income or wealth inequality within a nation

The Gini coefficient ranges from 0 to 1 (or 0% to 100%). A score of 0 represents perfect equality, where every citizen has the exact same income, while a score of 1 represents perfect inequality, where a single individual holds all the nation's wealth. It is a crucial metric for assessing the inclusiveness of economic growth.

Topic Indian Economy - Indices
Exam Relevance SSC, Railway, UPSC
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