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Economists use the 'Gini coefficient' as a standardized measure of statistical dispersion intended to represent the income inequality within a nation. A score of 0 represents perfect equality, while a score of 1 indicates maximum inequality. While useful for comparisons, critics argue the metric ignores non-monetary assets and the specific impact of social welfare programs.

Which choice best summarizes the main idea of the passage?

  1. The absolute necessity of achieving a Gini score of 0 in order to have a healthy national economy.
  2. A list of the specific countries that currently have the highest levels of income inequality today.
  3. The way social welfare programs are the primary reason why the Gini coefficient is often inaccurate.
  4. The definition and application of the Gini coefficient along with its recognized limitations.

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