If the distribution of income changes such that Area B is twice as large as Area A, the value of the GINI ratio will be 0.24.
The GINI ratio is used to describe the way that the income of a nation is distributed across its population.
If the area of B is twice as large as that of A, the GINI ratio is:
= A / (A + B)
Solving gives:
= 1,200 / 5,000
= 0.24
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