Economics: Principles & Policy
14th Edition
ISBN: 9781337696326
Author: William J. Baumol; Alan S. Blinder; John L. Solow
Publisher: Cengage Learning
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Question
Chapter 20, Problem 3DQ
To determine
The difference between absolute and relative poverty.
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Although it is hard to separate the causes of poverty from the effects, there is no doubt that poverty is associated with various economic and social ills. Suppose that you were a policymaker in the government and your goal was to reduce the number of people living in poverty. How would you achieve this goal?
Use the following information to calculate poverty rates for the following two countries, Woolandia and Narnia.
Set the poverty line equal to $365.
Calculate the Headcount Index measure of poverty for each country.
What does this tell you (or not tell you) about poverty in the countries?
Define poverty in your own words
Chapter 20 Solutions
Economics: Principles & Policy
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Similar questions
- 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?arrow_forwardWhat groups in the U.S. population are most likely tolive in poverty?arrow_forwardWhy do most modern societies try to reduce poverty? What is the most effective way to reduce poverty in your community in the long term?arrow_forward
- What do you think about the income trap - is it a myth or reality? How does the middle-income trap affect the equality and poverty of citizens? What can be done to avoid or escape from the trap? Answer correctly and explain within 40 mins will give you positive feedback.arrow_forwardIn which community is poverty likely to be the worse?arrow_forwardDefine the term Concentrated poverty?arrow_forward
- Poverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The official definition of the poverty line traces back to Group of answer choices A)The Great Depression B)Mollie Orshansky, whose idea was to define a poverty line based on the cost of a healthy diet. C)1953 and the ability to pay for housing and food. D)The 1965 cost of providing food, housing, and transportation.arrow_forwardBased on the circle graph, write three generalizations about poverty in America in the 1970’s.arrow_forwardWhy would income inequality be as damaging as poverty? Explain each concept.arrow_forward
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