In this part, we will make two big assumptions. First, farmers only earn income from farming. Second, large farms are more productive than small farms. Specifically, assume that: Farmers who own less than 20 acres earn income of $100 per acre. For example, a farmer with 7 acres of land would earn $700 of income (= 7 acres x $100/acre). Farmers who own 20 acres or more earn income of $500 per acre. For example, a farmer with 25 acres would earn $12,500 (= 25 acres x $500/acre). Assume that the poverty line in Nicaragua in 2007 was $5,000 per household. Calculate and report in Table 3 the various poverty indices before and after the Land Reform policy. (Note: You have to calculate each households' income using the information given above.) Table 3: Poverty Measures Before and After Land Reform [Report your results to 3 decimals; for example 0.123] Before Land Reform Policy After Land Reform Policy Poverty Headcount Index Poverty Gap Index FGT-2

Oh no! Our experts couldn't answer your question.

Don't worry! We won't leave you hanging. Plus, we're giving you back one question for the inconvenience.

Submit your question and receive a step-by-step explanation from our experts in as fast as 30 minutes.
You have no more questions left.
Message from our expert:
Hi and thanks for your question! Unfortunately we cannot answer this particular question due to its complexity. We've credited a question back to your account. Apologies for the inconvenience.
Your Question:
HHID LAND
1 51
2 16
3 32
4 13
5 52
6 42
7 40
8 8
9 8
10 8
11 8
12 8
13 8
14 8
15 8
16 3
17 3
18 3
19 3
20 3
21 3
22 3
23 3
24 3
25 3
26 3
27 33
28 52
29 35
30 37
31 38
32 36
33 31
34 17
35 27
36 32
37 44
38 39
39 28
40 52
41 20
42 52
43 13
44 40
45 17
46 35
47 34
48 28
49 43
50 33
51 36
52 16
53 47
54 26
55 47
56 51
57 31
58 1
59 1
60 1
61 1
62 1
63 1
64 1
65 1
HHID LAND
1 23.30528846
2 23.34903846
3 23.39278846
4 23.43653846
5 23.48028846
6 23.52403846
7 23.56778846
8 23.61153846
9 23.65528846
10 23.69903846
11 23.74278846
12 23.78653846
13 23.83028846
14 23.87403846
15 23.91778846
16 23.96153846
17 24.00528846
18 24.04903846
19 24.09278846
20 24.13653846
21 24.18028846
22 24.22403846
23 24.26778846
24 24.31153846
25 24.35528846
26 24.39903846
27 24.44278846
28 24.48653846
29 24.53028846
30 24.57403846
31 24.61778846
32 24.66153846
33 24.70528846
34 24.74903846
35 24.79278846
36 24.83653846
37 24.88028846
38 24.92403846
39 24.96778846
40 25.01153846
41 25.05528846
42 25.09903846
43 25.14278846
44 25.18653846
45 25.23028846
46 25.27403846
47 25.31778846
48 25.36153846
49 25.40528846
50 25.44903846
51 25.49278846
52 25.53653846
53 25.58028846
54 25.62403846
55 25.66778846
56 25.71153846
57 25.75528846
58 25.79903846
59 25.84278846
60 25.88653846
61 25.93028846
62 25.97403846
63 26.01778846
64 26.06153846
65 26.10528846
HHID LAND
1 26.14903846
2 26.19278846
3 26.23653846
4 26.28028846
5 26.32403846
6 26.36778846
7 26.41153846
8 26.45528846
9 26.49903846
10 26.54278846
11 26.58653846
12 26.63028846
13 26.67403846
14 26.71778846
15 26.76153846
16 26.80528846
17 26.84903846
18 26.89278846
19 26.93653846
20 26.98028846
21 27.02403846
22 27.06778846
23 27.11153846
24 27.15528846
25 27.19903846
26 27.24278846
27 27.28653846
28 27.33028846
29 27.37403846
30 27.41778846
31 27.46153846
32 27.50528846
33 27.54903846
34 27.59278846
35 27.63653846
36 27.68028846
37 27.72403846
38 27.76778846
39 27.81153846
40 27.85528846
41 27.89903846
42 27.94278846
43 27.98653846
44 28.03028846
45 28.07403846
46 28.11778846
47 28.16153846
48 28.20528846
49 28.24903846
50 28.29278846
51 28.33653846
52 28.38028846
53 28.42403846
54 28.46778846
55 28.51153846
56 28.55528846
57 28.59903846
58 28.64278846
59 28.68653846
60 28.73028846
61 28.77403846
62 28.81778846
63 28.86153846
64 28.90528846
65 15
66 42
67 40
68 5
69 5
70 5
71 5
72 5
73 5
74 5
75 5
76 1
77 1
78 1
79 1
80 1
81 1
82 1
83 1
84 1
85 1
86 1
87 1
88 1
89 29
90 31
91 32
92 50
93 47
94 4
95 4
96 4
97 4
98 4
99 4
100 4
101 4
102 44
103 10
104 13
105 3
106 3
107 3
108 3
109 3
110 3
111 3
112 3
113 3
114 3
115 3
116 33
117 40
118 38
119 41
120 32
121 29
122 5
123 5
124 5
125 5
126 5
127 5
128 5
129 5
130 23
131 26
132 30
133 45
134 31
135 42
136 13
137 10
138 31
139 52
140 42
141 13
142 28
143 14
144 32
145 2
146 2
147 2
148 2
149 2
150 2
151 2
152 2
153 2
154 2
155 2
156 25
157 25
158 17
159 52
160 30
161 49
162 44
163 41
164 12
165 18
166 38
167 25
168 36
169 42
170 28
171 21
172 39
173 33
174 42
175 25
176 48
177 14
178 27
179 22
180 29
181 29
182 35
183 28
184 42
185 30
186 8
187 8
188 8
189 8
190 8
191 8
192 8
193 8
194 41
195 22
196 36
197 46
198 25
199 38
200 37
201 19
202 39
203 47
204 32
205 18
206 43
207 41
208 2
209 2
210 2
211 2
212 2
213 2
214 2
215 2
216 2
217 2
218 2
219 37
220 50
221 12
222 30
223 46
224 6
225 6
226 6
227 6
228 6
229 6
230 6
231 33
232 11
233 40
234 18
235 29
236 23
237 49
238 28
239 17
240 20
241 36
242 27
243 17
244 42
245 39
246 20
247 38
248 13
249 25
250 41
251 18
252 10
253 17
254 32
255 28
256 10
257 1
258 1
259 1
260 1
261 1
262 1
263 1
264 1
265 1
266 1
267 1
268 1
269 1
270 1
271 15
272 28
273 25
274 19
275 15
276 4
277 4
278 4
279 4
280 4
281 4
282 4
283 4
284 19
285 21
286 16
287 3
288 3
289 3
290 3
291 3
292 3
293 3
294 3
295 3
296 3
297 3
298 11
299 24
300 11
301 35
302 23
303 45
304 19
305 32
306 25
307 28
308 34
309 19
310 44
311 23
312 24
313 49
314 25
315 9
316 9
317 9
318 9
319 9
320 9
321 9
322 46
323 32
324 35
325 34
326 14
327 20
328 15
329 22
330 8
331 8
332 8
333 8
334 8
335 8
336 8
337 8
338 39
339 29
340 49
341 38
342 16
343 28
344 14
345 34
346 11
347 11
348 42
349 27
350 41
351 10
352 33
353 35
354 12
355 14
356 23
357 33
358 24
359 28
360 30
361 14
362 22
363 9
364 9
365 9
366 9
367 9
368 9
369 9
370 2
371 3
372 3
373 3
374 3
375 3
376 3
377 3
378 3
379 3
380 3
381 3
382 25
383 28
384 24
385 36
386 35
387 26
388 21
389 18
390 21
391 16
392 26
393 44
394 8
395 8
396 8
397 8
398 8
399 8
400 8
401 8
402 37
403 29
404 21
405 39
406 30
407 26
408 18
409 7
410 7
411 7
412 7
413 7
414 7
415 7
416 7
417 38
418 37
419 26
420 39
421 13
422 5
423 5
424 5
425 5
426 5
427 5
428 5
429 5
430 12
431 36
432 30
433 50
434 14
435 49
436 23
437 9
438 9
439 9
440 9
441 9
442 9
443 9
444 9
445 20
446 34
447 7
448 7
449 7
450 7
451 7
452 7
453 7
454 7
455 50
456 35
   
In this part, we will make two big assumptions. First, farmers only earn income from farming. Second, large farms are
more productive than small farms. Specifically, assume that:
Farmers who own less than 20 acres earn income of $100 per acre. For example, a farmer with 7 acres of land
would earn $700 of income (= 7 acres x $100/acre).
Farmers who own 20 acres or more earn income of $500 per acre. For example, a farmer with 25 acres would
earn $12,500 (= 25 acres x $500/acre).
Assume that the poverty line in Nicaragua in 2007 was $5,000 per household. Calculate and report in Table 3 the
various poverty indices before and after the Land Reform policy. (Note: You have to calculate each households'
income using the information given above.)
Table 3: Poverty Measures Before and After Land Reform
[Report your results to 3 decimals; for example 0.123]
Before Land Reform
Policy
After Land Reform
Policy
Poverty Headcount
Index
Poverty Gap Index
FGT-2
Transcribed Image Text:In this part, we will make two big assumptions. First, farmers only earn income from farming. Second, large farms are more productive than small farms. Specifically, assume that: Farmers who own less than 20 acres earn income of $100 per acre. For example, a farmer with 7 acres of land would earn $700 of income (= 7 acres x $100/acre). Farmers who own 20 acres or more earn income of $500 per acre. For example, a farmer with 25 acres would earn $12,500 (= 25 acres x $500/acre). Assume that the poverty line in Nicaragua in 2007 was $5,000 per household. Calculate and report in Table 3 the various poverty indices before and after the Land Reform policy. (Note: You have to calculate each households' income using the information given above.) Table 3: Poverty Measures Before and After Land Reform [Report your results to 3 decimals; for example 0.123] Before Land Reform Policy After Land Reform Policy Poverty Headcount Index Poverty Gap Index FGT-2
Knowledge Booster
Cost-minimizing Input Choice
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education