Which measure ranges from 0 to 1 to describe income inequality, where 0 means perfect equality?

• A. GDP
• B. HDI
• C. Gini Coefficient
• D. MPI

Answer: (C)

In measuring how income is spread across a population, the Gini coefficient is the standard index. It yields a number between 0 and 1, where 0 means everyone has exactly the same income and 1 means one person has all the income while everyone else has none. This makes it ideal for describing inequality rather than overall size or development. GDP counts total economic output, not how it's shared; the Human Development Index combines health, education, and income to reflect development, not distribution on a 0–1 scale; the Multidimensional Poverty Index looks at multiple deprivations to assess poverty, not income concentration. So the Gini coefficient is the measure that directly describes income inequality on a 0 to 1 scale.