# Income Distribution Comparison: Costa Rica vs. United States

## Understanding Gini Coefficient and Income Distribution

The Gini coefficient is a measure of income inequality within a population. It ranges from 0 to 1, where 0 represents perfect equality (everyone has the same income) and 1 represents perfect inequality (one person has all the income). A higher Gini coefficient indicates a more unequal distribution of income.

## Gini Coefficient in Costa Rica and the United States

According to the given information, the Gini coefficient in Costa Rica is 0.35, while in the United States, it is 0.47. Based on these values, we can analyze the income distribution in both countries.

**The Comparison**

**Based on this information only, which of the following is true?**

a) The income distribution in Costa Rica is more equal than in the United States

b) The income distribution in Costa Rica is less equal than in the United States

c) Income levels in Costa Rica are higher on average than in the United States

d) Income levels in Costa Rica are lower on average than in the United States

**Final Answer:**

The income distribution in Costa Rica is more equal than in the United States based on the given Gini coefficients.

**Explanation:**

Income distribution can be measured using the Gini coefficient which ranges from 0 to 1. A Gini coefficient closer to 0 indicates a more equal distribution of income, while a coefficient closer to 1 indicates a more unequal distribution. In this case, Costa Rica has a Gini coefficient of 0.35, while the United States has a coefficient of 0.47.

Based on this information, we can conclude that the income distribution in Costa Rica is more equal than in the United States (option a) because the Gini coefficient is lower. However, we cannot determine the average income levels in Costa Rica and the United States solely based on the Gini coefficients provided, so options c) and d) cannot be determined.

suppose that the gini coefficient in costa rica is 0.35 and is 0.47 in the united states. based on this information only, which of the following is true?

The income distribution in Costa Rica is more equal than in the United States based on the given Gini coefficients.