Question

Q. Consider the following statements:

Which of the statements given above is/are correct?

• A.
  1 only
• B.
  2 only
• C.
  Both 1 and 2
• D.
  Neither 1 nor 2

Answer 1

The correct option is A

1 only

Explanation:

Statement 1 is correct: Gini index is a method or a way adopted to compare income distribution in a society vis-a-vis a similar society in which everyone earned exactly the same amount. Thus, it is a measure of income distribution among individuals or households within an economy.

Statement 2 is incorrect- Gini index measures inequality between the range of 0 and 1. Zero represents the situation where everybody is equal, and 1, where all the country's income is earned by a single person. Thus, 0 indicates perfect equality and 1 denotes perfect inequality.