Income Inequality Can Be Measured by the Distribution of Income

Multiple Choice

Income inequality can be measured by the distribution of income. A common method of measuring the distribution of income is to use quintiles. What does this mean?

A) each quintile represents the number of people earning the same level of income.
B) each quintile represents one fifth of the total population and the percent of total income received by that fifth.
C) each quintile represents one fifth of the total income or GDP and the percent of the population earning that fifth.
D) each quintile represents 5 percent of the population.