Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics A Modern Approach

Authors: Jeffrey M. Wooldridge

2nd Edition

0324113641, 9780324113648

More Books

Students also viewed these Economics questions