What would the Gini coefficient be if one person retains all of the income in a country? a.) 0 b.) 1 c.) 1 d.) 50 SUBMIT MY ANSWER Report an issue with this question Kate Eskra Kate Eskra Sophia Tutorial Sophia Tutorial Measuring Income Inequality Sophia Tutorial Sophia Tutorial Make my favorite instructor PDF Version WHAT'S COVERED This lesson will cover the Gini coefficient, including what it is and how it is measured. We will explore how the Lorenz curve relates to the Gini coefficient and apply these concepts to income inequality in the United States and other nations. Specifically, this lesson will cover: 1. Income Inequality 2. Gini Coefficient 3. Lorenz Curve 4. Income Inequality in the United States and Worldwide Terms to Know 1. Income Inequality An underlying principle of capitalism is that it provides incentive to work harder, meaning if you want to improve your situation, you will be rewarded by advancing yourself and working harder. Therefore, most Americans do not believe in 100% income inequality, or everyone earning the same amount. This is why most Americans hate the idea of communism or socialism, where in theory, everybody has the same amount. Americans like the idea that