ICAEW SE · Chapter 2 · Question 11 of 13
The Gini coefficient is a common measure of economic inequality within a country. What does a Gini coefficient of zero indicate?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Perfect equality, with income shared equally by everyone
Explanation
The Gini coefficient ranges from 0 (perfect equality) to 1, or 100 if expressed as a percentage (perfect inequality). It measures how income or wealth is distributed, not growth or unemployment. Rising inequality is one of the key challenges to social and economic sustainability.
More Pillars of sustainability MCQs
- Q13A mining company has the legal permits it needs, but local communities strongly oppose its new mine and have organised blockades. Which…
- Q1What are the three pillars of sustainability?
- Q2John Elkington's 'triple bottom line' encourages organisations to report on which three areas?
- Q3Several fishing companies share access to the same sea. Each company increases its catch to maximise its own profits, and within a few…
- Q4An audit of a clothing retailer's overseas suppliers finds that workers have had their passports confiscated and are being forced to work…