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

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91298997

Have any Question?Write your Review or question?

Related Questions in Business Economics

The head of retail sales at a large cosmetic company was

The head of retail sales at a large cosmetic company was interested in determining what the best marketing model was for launching a forthcoming new product to ensure high sales. She ran two separate simple linear regres ...

Electric car technology has been improving and the us shale

Electric car technology has been improving and the U.S. shale gas oil supply has been increasing. What will be the impact on the crude oil market price? What will be the impact on the gas-burning auto market price? Expla ...

1 lisa and david have been married for two years they have

1. Lisa and David have been married for two years. They have just decided that summer of 2020 should be spent in Switzerland. They figured out that in order to meet the cost of the entire vacation they would only have to ...

Discuss three ranges of the aggregate supply curve explain

Discuss three ranges of the aggregate supply curve. Explain changes in the AD-AS macroeconomic equilibrium due to the aggregate demand shifts and due to aggregate supply shifts. Apply the AD-AS model to the two types of ...

It is often argued that regulation is justified in cases

It is often argued that regulation is justified in cases where some form of market failure would otherwise cause an inefficient allocation of resources. Can someone help me identify possible sources of market failure tha ...

Suppose the market demand and market supply curves are

Suppose the market demand and market supply curves are given by the following equations: QD = 120 - 10P QS = 20P a. Draw a figure of supply and demand representing this market. Be sure to label the axes and intercepts. ( ...

The distribution of seed weights for pumpkins is closely

The distribution of seed weights for pumpkins is closely approximated by a normal distribution. You know that 95% of the seeds weigh less than 0.68 grams and that 5% of the seeds weigh less than 0.36 grams. Suppose you s ...

Answer in true or false1 compensation of employees is the

Answer in true or False: 1) Compensation of employees is the largest component of national income. 2) National income is the income that individuals and firms earn from their production.

At a college the scores on the chemistry final exam are

At a college the scores on the chemistry final exam are approximately normally distributed, with a mean of 75 and a standard deviation of 15. The scores on the calculus final are also approximately normally distributed, ...

For a population of individuals that has a standard

For a population of individuals that has a standard deviation of 10, what is the standard error of the mean for samples of size (a) 2, (b) 3, (c) 4, (d) 5, (e) 10, (f) 20, (g) 100?

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 Business Economics Expert