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1. As the value of the Gini coefficient approaches one,
A. the percentage of the population under the poverty line increases.
B. income distribution becomes more unequal.
C. the percentage of the population under the poverty line decreases.
D. income distribution becomes less unequal.
2. The Gini coefficient is measured by
A. summing up the cumulative income percentages on the Lorenz curve.
B. using the formula: area between perfect inequality and Lorenz curve + area between the line of perfect equality to the Lorenz curve.
C. summing up the total income earned by the population and dividing by the size of the population.
D. using the formula: area between the line of perfect equality and the Lorenz curve + the area under the line of perfect equality.
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