Correct Answer: Perfect Equality
Subject: economics
Explanation: • <b>Key Fact</b> A Gini Coefficient of 0 represents perfect equality. • <b>Supporting Detail</b> This means area 'A' (between actual curve and line of equality) is 0, so the actual curve is on the line of equality. • <b>Related Concept</b> A Gini coefficient of 1 (or 100) represents perfect inequality (one person has all income). • <b>Why wrong options are wrong</b> Perfect inequality is when the Gini coefficient is 1. • <b>Exam Trick</b> Gini 0 = Zero gap (Equality). Gini 1 = 1 person has everything (Inequality). • <b>Additional Info</b> 'A' is the area between the line of equality and the Lorenz Curve, and 'B' is the area under the Lorenz curve.
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