Consider the following distribution of income in a 12, Ask an Expert

Economics

Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3.

Based on following information

1) What is the level of absolute poverty in this economy? What policy (only one) would you adopt to mitigate this poverty?

2) Suppose rural incomes are raised to 1.5 though expanded agricultural expects. What will happen to the Gini coefficient of this economy? Why?

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91237618

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question in a perfectly competitive market demand is qd 32

Question: In a perfectly competitive market, demand is QD = 32 - 1.5P and supply is QS = -20 + 2.5P. Find equilibrium price and quantity and producer and consumer benefits. Say an innovation then lowers every seller's ma ...

Question consumers problem ed is a programmer who has

Question: Consumer's Problem Ed is a programmer, who has preferences over the consumption good and leisure given by U(C, l) = Cl. He needs to use at least 8 hours a day for sleep, eating, etc., but he can in principle wo ...

Question debeers the dominant firm in diamond mining and

Question: DeBeers, the dominant firm in diamond mining and wholesale marketing, has until recently been unintegrated into any downstream activities. In the past few years, however, it has opened a handful of its own reta ...

Question ge marine systems is planning to supply a japanese

Question: GE Marine Systems is planning to supply a Japanese shipbuilder with aero-derivative gasturbines to power 11 DD-class destroyers for the Japanese Self-Defense Force. The buyercan pay the total contract price of ...

Question many studies have shown that our sensory detection

Question: Many studies have shown that our sensory detection abilities decline as we grow older. Discuss the implications of the absolute threshold for marketers attempting to appeal to the elderly. The response must be ...

Question suppose that the secretary of health and human

Question: Suppose that the Secretary of Health and Human Services asks you to briefly explain the difference between technical efficiency and allocative efficiency. What would you say? What examples would you provide? Wi ...

Question in mid-2002 it was announced that one of the

Question: In mid-2002, it was announced that one of the leading bond funds managed by PIMCO now had more assets under management than the Fidelity Magellan Fund. Discuss the pros and cons of investors switching their ass ...

Question explain if you feel society should attempt to

Question: Explain if you feel society should attempt to equalize income or economic opportunities. Are the issues of equity and equality in the distribution of income synonymous? To what degree, if any, is income inequal ...

Question 1 what is the presumed purpose of all legislation

Question: 1. What is the presumed purpose of all legislation according to the economic theory of legislation? 2. How do the concepts of "concentrated" and "diffuse" interests determine whether a group represents its inte ...

Question the following article appeared on the front page

Question: The following article appeared on the front page of the Wall Street Journal on April 17, 1998: The public, by 79% to 17%, favors raising the minimum hourly wage by $1 to $6.15. But Princeton economist Alan Krue ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert