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City and Regional Planning QUESTION #5015
Question 1
What does the Gini Coefficient measure in urban economics?
  • Population density
  • Income inequality✔️
  • Housing prices
  • Transportation costs
Correct Answer Explanation
The Gini Coefficient (0-1 scale) measures income/wealth inequality. 0 represents perfect equality; 1 represents maximum inequality. Values above 0.4 indicate high inequality. Calculated from the Lorenz curve: $G = \frac{A}{A+B}$ where A is area between Lorenz curve and equality line.