What does a Gini coefficient of zero represent?

a. perfect income equality

b. perfect income inequality

c. marginal income equality

d. marginal income inequality

2- Consider an intergenerational elasticity of income coefficient of 0.25. Which of the following is the best interpretation of this?

a. A 2.50% increase in father earnings is associated with a 10% increase in son earnings.

b. A 10% increase in father earnings is associated with a 2.5% increase in son earnings.

c. A 10% increase in father earnings is associated with a 3% increase in son earnings.

d. A 10% increase in father earnings is associated with a 10% increase in son earnings.