ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality. Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution.

Detailed explanation-2: -The Gini coefficient ranges from 0, indicating perfect equality (where everyone receives an equal share), to 1, perfect inequality (where only one recipient or group of recipients receives all the income).

Detailed explanation-3: -Gini coefficient is a typical measure of income inequality. The coefficient varies between 0 and 1, with 0 representing perfect equality and 1 perfect inequality.

Detailed explanation-4: -Cowell says that the Gini coefficient is useful, particularly because it allows negative values for income and wealth, unlike some other measures of inequality. (If some amount of the population has negative wealth (owes money), the Lorenz curve will dip below the x-axis.) But the Gini coefficient also has limitations.

Detailed explanation-5: -The Gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality.