(a) The income gap ratio and the head count, as measures of poverty, may lead to very of antipoverty resources by policy makers. (b) The poverty gap ratio and the income gap ratio focus attention on different aspects of the poverty problem. (c) Both the poverty gap ratio and income gap ratio are insensitive to the inequality among the poor. (d) The FGT indices are increasingly sensitive to the income distribution among the poor, the greater is the value of a

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter12: Income Distribution, Poverty, And Discrimination
Section: Chapter Questions
Problem 17SQ
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Q-3 Are the following statement true of false ? 

You need to provide an aurgument for and against it why it is so.

(a) The income gap ratio and the head count, as measures of poverty, may lead to very different uses
of antipoverty resources by policy makers.
(b) The poverty gap ratio and the income gap ratio focus attention on different aspects of the poverty
problem.
(c) Both the poverty gap ratio and income gap ratio are insensitive to the inequality among the poor.
(d) The FGT indices are increasingly sensitive to the income distribution among the poor, the greater
is the value of a.
Transcribed Image Text:(a) The income gap ratio and the head count, as measures of poverty, may lead to very different uses of antipoverty resources by policy makers. (b) The poverty gap ratio and the income gap ratio focus attention on different aspects of the poverty problem. (c) Both the poverty gap ratio and income gap ratio are insensitive to the inequality among the poor. (d) The FGT indices are increasingly sensitive to the income distribution among the poor, the greater is the value of a.
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