Question

Relative poverty is measured by:

• A. Gini Coefficient
• B. Poverty Line
  
• C. Cost of living
  
• D. All of the above

Answer 1

The correct option is A

Gini Coefficient

Gini coefficient shows the inequality in distribution like inequality of income. The value of the coefficient varies between 0 and 1 (100 if calculated in percentage terms). The value of the coefficient increases with increase in inequality in the distribution of income.