Q. Consider the following statements regarding the Gini Index:

1. The Gini Index measures income or wealth inequality within a country.
2. A Gini value of 0 indicates perfect inequality, while a value of 1 indicates perfect equality.
3. Scandinavian countries typically record lower Gini coefficients than Latin American countries.
4. A Gini value of 1 (or 100%) represents perfect inequality.

Which of the above statements is / are correct?
Answer: Only 1, 3 and 4
Notes: The Gini Index measures income/wealth inequality (statement 1 is correct). A Gini of 0 means perfect equality, not inequality (statement 2 is incorrect). Scandinavian countries do generally have lower Gini coefficients than Latin America (statement 3 is correct). A Gini value of 1 indicates perfect inequality (statement 4 is correct).