Economics 9708 · AS & A Level · Taxes and subsidies

Taxes and subsidies — practice question

The table presents Gini coefficients for income and wealth in two countries. Which statement is correct?

  • AGini coefficients are not comparable between income and wealth because one is a flow concept and the other is a stock concept.
  • BIncome inequality is greater in country P than in country Q.
  • CWealth inequality is greater in country P than in country Q.
  • DWealth inequality is greater than income inequality in both countries.

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