Question
Two economies A and B, contain 10 individuals each. Each economy has 5 people below the poverty line. The poverty line is at $20, the
Two economies A and B, contain 10 individuals each. Each economy has 5 people below the poverty line. The poverty line is at $20, the average income of a poor individual in economy A is $5 and in economy B is $6.
a)the HCI in economy A and B is 0.5 each; and the total poverty gap in economy A is $75 and economy B is $70
b)the HCI in economy A and B is 0.5 each; and the total poverty gap in economy A is $70 and economy B is $75
c)the HCI in economy A and B is 0.5 each; and the total poverty gap in economy A and B is $100 each
d)the HCI in economy A and B is 0.5 each; and the total poverty gap in economy A is $25 and B is $30.
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