Q. Regarding the Lorenz curve and Gini coefficient, consider the following statements:
Select the correct answer using the codes given below:
Explanation:
Statement 1 is correct: There are two major methods of calculating income inequality- the Lorenz curve and the Gini Coefficient.
Statement 2 is correct: The Gini coefficient can vary from zero to one.
Statement 3 is incorrect: As a nation moves closer to a perfect equality in its income distribution, the Gini coefficient will approach zero and in the case of perfect inequality, it is 1.