ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
Use the following information to calculate poverty rates for the following two countries, Woolandia and Narnia. Set the poverty line to $365.
- What is the Poverty Gap Index for each country?
- What does this measure tell you that is different from the headcount index?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Define poverty line, poverty gap index and headcount index.
VIEW Step 2: Calculate poverty gap index of each country.
VIEW Step 3: Calculate Headcount Index for both the countries.
VIEW Step 4: Information given by Poverty Gap Index that is different from the headcount Index.
VIEW Solution
VIEW Step by stepSolved in 5 steps with 12 images
Knowledge Booster
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
- The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2006, the poverty line is set at an annual income of $42,350 for an individual. Year 2000 2006 2012 2018 Lowest Quintile 3.0 3.4 3.8 5.0 Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Second Quintile 8.6 9.4 9.7 11.0 The data in the table suggest that there was 14.0 14.6 15.2 15.5 21.9 22.4 22.9 25.0 Highest Quintile 52.5 50.2 48.4 43.5 income inequality from 2000 to 2018.arrow_forwardOne theory of a contributor to poverty is that it plays an important role or function in our society and our economic system. Maintaining a pool of people who are poor means that workers are always available for less desirable and lower-paying but necessary jobs. True Falsearrow_forwardIn DevEconLand, there are 10 people. Four of them earn $1/day each, two earn $3/day each and the remaining four earn $4/day each. If the poverty line is defined as $2/day, what is the headcount ratio, the total poverty gap ratio and the total poverty gap squared ratio respectively? Select one: a. 1/5, 1/5 and 1/10 respectively. b. 1/5, 2/5 and 1/5 respectively. c. 2/5, 1/5 and 1/10 respectively. d. None of the above.arrow_forward
- How is human poverty different from income poverty?arrow_forwardBriefly describe the Leydon Poverty Line and how it differs fromobjective measures of poverty. Finally, explain the concept of ‘extreme poverty’. i don't need an essay I only need an answer so I can understandarrow_forwardList three policies that can affect the level of economic inequality.arrow_forward
- The following table summarizes the income distribution for the town of Perkopia, which has a population of 10,000 people. Every individual within an income group earns the same income, and the total annual income in the economy is $500,000,000. Suppose that in 2010, the poverty income threshold, or poverty line, is set at an annual income of $42,350 for an individual. Year 2006 2010 2016 2020 Quintile Lowest Lowest Quintile Second Quintile 3.0 3.4 3.8 5.0 The data in the table suggest that there was Second Middle Fourth Highest Share of Total Income in Perkopia (Percent) Middle Quintile Fourth Quintile Highest Quintile 8.6 9.4 9.7 11.0 Share of Income in 2010 (Percent) 3.4 9.4 14.6 22.4 50.2 14.0 14.6 15.2 15.5 Complete the following table to help you determine the poverty line in Perkopia in 2010. To do this, begin by determining the total income of all individuals in each quintile, using the fact that total annual income in the economy is $500,000,000. Next, determine the income of…arrow_forwardWhat are the causes, effects, and solutions of the rising income inequality in the United States?arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
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)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
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-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education