Gini coefficient
The Gini coefficient (or Gini index) measures income inequality on a scale from 0 to 1 (or 0% to 100%). A value of 0 indicates perfect equality (everyone has same income), whilst 1 indicates perfect inequality (one person has all income). It is derived from the Lorenz curve.
Real World
South Africa has one of the world's highest Gini coefficients (around 0.63), reflecting extreme inequality where a small wealthy minority holds most income despite post-apartheid growth — often cited as evidence that GDP growth alone does not reduce inequality.
Exam Focus
Evaluate the Gini's limitations (hides distribution within deciles, ignores wealth vs income) to access Level 4 evaluation marks.
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