Question
g) If incomes double in a country and the Gini coefficient remains unchanged, the absolute level of difference between incomes of rich and poor remains
g) If incomes double in a country and the Gini coefficient remains unchanged, the absolute level of difference between incomes of rich and poor remains the same.
True or False ( Explanation please)
h) Gross domestic product (GDP) based on Purchasing Power Parity (PPP) is the same as GDP based on the exchange rate. (4 marks)
True or False ( Explanation please)
i) Engel's law indicates that as income increases the proportion of income spent on necessity goods rises. (4 marks)
True or False ( Explanation please)
j) Theil index is a better measure of income inequality than the Gini coefficient. (4 marks)
True or False ( Explanation please)
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