Principles of Microeconomics (12th Edition)
12th Edition
ISBN: 9780134078816
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 21, Problem 1.2P
To determine
Why the high-income country Equatorial Guinea shows poor performance and poverty of 76%.
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What is the population of Nigeria? Of that population, what percentage live in poverty (indicate the definition of poverty that is being used)? What is the average income in your country (hint: look for GNI)?
The graph on Slide 126 of Part 3.1.1 (income dimensions) shows that if the linear trend since 1980
continues, Sustainable Development Goal 1 will be achieved by 2025. What is SDG1, and why might
this linear projection be unrealistic?
Poverty rate (%)
A linear projection suggests
World
less
HICS
that SDG1 will be achieved
World
2015 9.98
11.59
2013 11.2
13.05
2012 12.79
14.95
2011 13.72
2010 15.73
60
16.05
18.45
2008 18.16
21.36
Rate of decline of about
2005 20.71
24.42
50
2002 25.49
30.16
1% point per year
1999 28.62
33.98
1996 29.44
35.09
40
1993 33.99
40.69
43.17
42.76
1990 35.88
1987 35.33
30
1984 39.23
47.8
1981 42.12
51.7
Source: PovcalNet (World Bank)
• World
10
• World less high-income countries
Reaches
zero in
2025 =>
1980
1984
1988
1992
1996 2000
2004
2008
2012
2016
Poverty rate ($1.90 per day)
20
Due to a stagnant income for 23 years, the number of Mexicans who cannot buy the basic basket has been practically the same since 1992. According to data from the National Council for the Evaluation of Social Development Policy (Coneval), in 2014, the 53.2 percent of the population had income below the welfare line, and a monthly per capita income of 3,115 pesos. In 1992, when poverty began to be measured in Mexico, it was 53.1 percent of the population, with an average income of 3,322 pesos. The basic product consumption basket is a necessary element to calculate inflation through the (INPC / GDP deflator / interest rate) _______________________________
Chapter 21 Solutions
Principles of Microeconomics (12th Edition)
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- Will The Tax Reform for Acceleration and Inclusion Law (TRAIN Law) will lessen or worsen poverty and income inequality in a country?arrow_forwardA key theme of criticism of globalization is that it seems to unfairly reward the rich and punish the poor. One way to think about this is to look at the issue of income inequality. Technically, income inequality is the unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population. For example, a statistic may indicate that 70% of a country's income is controlled by 20% of that country's residents. Work on income inequality in the USA shows the change in income between 1980 and 2014 for every point on the distribution of people in terms of income percentile that is, we can track the changing distribution of income, from the poorest person to the richest person over that time span. As seen in the chart below, it’s mostly flat and close to zero, before spiking upward at the end—as such, some say it resembles a classic hockey-stick graph. Based on this…arrow_forwardThis indicator calculates the proportion of the population with incomes below the estimated poverty line: Select one: a. Head Count Ratio b. Income Gap Ratio c. Human Poverty Index d. Human Development Indexarrow_forward
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