Income Distribution
How income is divided among population.
Formula
Gini Coefficient = (Area between Lorenz curve and line of equality) / (Total area under line of equality)
Real World
South Africa has one of the world's highest Gini coefficients (around 0.63), meaning a small wealthy elite holds the majority of national income, limiting mass-market consumer spending.
Exam Focus
A higher Gini coefficient means greater inequality — state this explicitly and link it to purchasing power when evaluating market entry.
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