Tag: Income Distribution
The Gini coefficient is a statistical measure used to quantify income or wealth distribution inequality. Ranging from 0 (perfect equality) to 1 (absolute inequality), it’s a widely used tool in economics, despite limitations like not accounting for income levels or inequality sources.
The Capital-Labor Ratio is an economic indicator measuring the amount of capital available per worker in a firm or economy. It’s instrumental in determining productivity, wage levels, and employment. Changes in this ratio can significantly influence income distribution and economic growth.