Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini co

Question

Suppose the United States has a Gini coefficient of 0.4 and Sweden has a Gini coefficient of 0.25. Which of the following statements is true?

The distribution of income is more equal in the United States.

The distribution of income is more equal in the Sweden.

Income distribution is changing faster in the United States.

Without information on population, it is not possible to compare income distribution between countries.

The distribution of income is more equal in the United States.

The distribution of income is more equal in the Sweden.

Income distribution is changing faster in the United States.

Without information on population, it is not possible to compare income distribution between countries.

Explanation / Answer

Option (b)

The higher the Gini coefficient, the higher the income inequality. Since Sweden has lower Gini coefficient, income distribution is more equal in Sweden.

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