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    Meaning of the Gini coefficient

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    Please help answer the following problems.

    Suppose France has a Gini coefficient of 0.4, and Germany has a Gini coefficient of 0.3. Which of the following conclusions are we able to make with this information?

    a) The ratio of the total income of the lowest quintile of the income distribution to the total income of the highest quintile of the income distribution is higher in France than in Germany.

    b) The lowest quintile of France's income distribution earns a lower percentage of the aggregate French income than the lowest quintile of Germany's income distribution does of the aggregate German income.

    c) The lowest quintile of France's income distribution is poorer in absolute terms than the lowest quintile of Germany's income distribution.

    d) We cannot tell any of these things from the Gini coefficients of the two countries.

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    https://brainmass.com/economics/income-distribution/meaning-gini-coefficient-475843

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    Problem: Suppose France has a Gini coefficient of 0.4, and Germany has a Gini coefficient of ...

    Solution Summary

    This solution defines the Gini coefficient and shows which conclusion can be drawn by comparing the Gini coefficient of two countries.

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