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1. Which of the following does the Minimum Income Question ask? Do you earn enough income to make ends meet? How much income do you

1. Which of the following does the Minimum Income Question ask?

Do you earn enough income to make ends meet?

How much income do you need to make ends meet?

Do you consider someone with your income to be poor or not poor?

At what income do you think the poverty line should be set?

2. What is the mean/median ratio for the following distribution of income: (1, 2, 3, 6)?

0.83

1.50

1.00

1.20

3. What is the poverty gap index for the following distribution of income if the poverty line is 2.5: (1, 2, 3, 6)?

0.20

0.40

0.50

0.25

4. Which of the following statements about the Gini coefficient is true:

The Gini coefficient will change if the incomes of all members of the population are doubled.

Suppose person A earns $100 and person B earns $50. If the researcher mistakenly records the incomes as A earns $50 and B earns $100, then the Gini coefficient will increase.

Total inequality measured by the Gini coefficient accounts for, both, between-group and within-group inequality.

If we transfer a part of the income of the rich to the poor, the Gini coefficient would decrease.

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