Suppose Econoland, is populated by 15 individuals. These individuals work in three different sectors. 5 individuals work in farming and earn $1 each, 5 individuals work in the urban traditional sector for $3 each and 5 individuals work in the urban modern sector for $5 each.

a. What is the National Income of Econoland? What is the per capita income in Econoland? (2 points)

b. In a carefully labeled diagram, depict Econoland's Lorenz Curve. (3 points)

c. Explain how you would calculate the Gini Coefficient for Econoland. (1 point)

d. Suppose that Econoland's poverty line is $2. What is the level of poverty in Econoland? (Use P 0 and P 1 where P 0 and P 1 are the P with = 0 and = 1 respectively) (4 points)