Example Question #1 : Inequality
Which of the following is most commonly used to measure economic inequality?
The GINI coefficient is an index between 0 and 1, where 0 represents complete equality and 1 represents complete inequality. All countries are given a GINI ranking to represent the level of domestic inequality. HDI (the Human Development Index) is not solely a measure of inequality. GDP cannot be used to assess individual wealth (unlike GDP per capita), and the Policy Sore is a measure of a country's level of democracy.