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QUESTION 1: (5 marks) Suppose that the entire population of the world consists of 4 people divided into 2 countries of 2 people each. The
QUESTION 1: (5 marks) Suppose that the entire population of the world consists of 4 people divided into 2 countries of 2 people each. The following table shows data on their income and nationality. Based on this table suggest the MINIMUM value for Doris's income in country A such that a) within country income inequality is stronger than across country income inequality. Explain your answer. b) across country income inequality is stronger than within country income inequality. Explain your answer. PERSON NATIONALITY INCOME Country A Country B 3,000 Country B Country A ANSWER SPACE 4,000 Alfred Bob Carol Doris 2,000
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