Which one of the following statements about the Gini coefficient is not true?
A. It reflects the data shown in the Lorenz curve.
B. It must fall when the amount of income in an economy increases.
C. It equals zero when there is perfect equality.
D. It equals one when there is perfect inequality.
E. It increases as income inequality increases.
Answer: B
You might also like to view...
The "old" Keynesian approach dominated macroeconomic theory until the
A) 1930s. B) late 1950s. C) late 1960s. D) early 1980s.
An decrease in the velocity of money will shift the
a. IS curve up. b. LM curve up. c. LM curve down. d. IS curve down.
Why assume that firms maximize profit, when it is easy to find companies that pursue other goals such as saving rain forests (Ben and Jerry's) and sponsoring Mister Rogers (Sears)?
During a period of hyperinflation the Fed would probably be doing each of the following except
A. raising the discount rate. B. lowering reserve requirements. C. raising interest rates. D. selling securities on the open market.