UPSC Civil Services Model Paper 3

● Gini coefficient is a measure of statistical dispersion intended to represent the income or wealth distribution of a nation's residents, and is the most commonly used measurement of inequality. Hence, Option 1 is correct.
● Gini coefficient does not depend on either high income or low income. It also does not look at absolute incomes.
● A Gini coefficient of zero expresses perfect equality , where all values are the same (for example, where everyone has the same income.)
● A Gini coefficient of one (or 100%) expresses maximal inequality among values (e.g., for a large number of people, where only one person has all thein come or consumption, and all others have none, the Gini coefficient will be very nearly one). Hence, Option 2 is NOT correct .