Final answer:
The Gini ratio measures the overall dispersion of income, indicating the level of income inequality within a country or region, with 0 representing perfect equality and 1 indicating perfect inequality. Therefore correct option is C
Step-by-step explanation:
The Gini ratio, also known as the Gini coefficient, is a numerical measure of the overall dispersion of income within a country. It measures income inequality by calculating the distribution of income among different parts of the society. The coefficient is expressed as a value between 0 and 1, where 0 signifies perfect equality (everyone has the same income) and 1 signifies perfect inequality (one person has all the income). This metric does not measure absolute wealth or income levels, but rather the relative differences between incomes. A low Gini coefficient indicates a more uniform distribution of income, whereas a high coefficient points to a greater gap between the rich and the poor.
Regions within the United States display varying Gini coefficients, reflecting the differences in income inequality due to factors such as industry diversity, education investment, and cultural and ethnic heterogeneity. The coefficient is a key tool for sociologists and economists to analyze and compare the economic health and social outcomes in different regions and over time.