Answered: Explain why the poverty gap ratio is…

Explain why the poverty gap ratio is the better target measure of poverty than the head- count ratio. Use diagrams to substantiate your answer. l

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Labor Markets And Income Distribution

Section: Chapter Questions

Problem 11SQP

See similar textbooks

Related questions

Q: A typical Lorenz Curve, extracted from the Textbook, is shown below: 100 80 Lorenz curve (actual…

A: The Lorenz curve is simply the graphical representation of income inequalities. The line of…

Q: Consider five individuals, of whom three have zero income and two have $10,000 each. Based on Gini's…

A: There are 2 groups of people Group 1 consist 3 people with income 0 each person Group 2 consists 2…

Q: Poverty rates for females, Hispanics, and African Americans are for white males. much higher than…

A: Poverty rate for females, hispanics & african americans are mich higher than that for white…

Q: What does Ramey argue needs to be the policy focus for reducing inequality in the U.S.? O Create…

A: When talking about inequality among people, especially in terms of income inequality, Garey Raney…

Q: 3. Thailand's Gini index in 2019 was 34.9%. The equation of the Lorenz curve that was used to…

A: Gini index is a measure to calculate income inequality in a country. It is equal to the ratio of…

Q: If the poverty guideline for a family of four is $25,750, what is the most that a household can earn…

A: With poverty guideline for a family of four is 25750 $, any income marginally above the poverty…

Q: Refer to the figure given below. A Lorenz Curve On the Lorenz curve shown in the diagram, 100- O A.…

A: Lorenz curve is a measure of inequality in the economy. Cumulative percentage of families is taken…

Q: As income transfer programs accompanying the War on Poverty increased beginning in the latter half…

A: Income move programs point towards reallocation and moving of abundance and income through the…

Q: Top 0.1% Income Share 1913 1973 1978 1983 1988 1993 1998 2003 2008 4. Research by Piketty and Saez…

A: Inequality: It refers to the process under which the economy does not have equal level of income for…

Q: Measuring Inequality: Consider the following (roughly measured) distribution of income in th…

A: The X axis represents the percentage of households in the society and the Y axis represents the…

Q: Which of the following is a major cause of income inequality in the Uinited States? O Progressive…

A: Income equality refers to the situation when the income in an economy is not distributed evenly.…

Q: Explain three methods of measuring the income inequality of a nation?

A: Economic inequality is how wealth is spread inefficiently through a society. There are many…

Q: Canada had the following distribution of Income after taxes in 2006 Based on the information in the…

A: Gini Coefficient is a widely used measure for income inequality in the countries . Gini Coefficient…

Q: What goods and services would you include in an estimate of the basic necessities for a family of…

A: Poverty is a situation or circumstance wherein the financial services and necessities for a decent…

Q: answer need from reading AND expertise of economic Q-what are some of the dimensions of economic…

A: The term “income inequality” refers to an uneven distribution of income throughout the population.…

Q: Why is the wage distribution positively skewed? (ii) Describe how to calculate the Gini coefficient.…

A: The Gini coefficient's principal advantage is that it is a proportion of imbalance, not a…

Q: etical data on the size distribution of income and wealth for each quintile (on Second 10% 83 Fourth…

A: *Answer:

Q: Lorenz Curve A curve illustrating the degree of equality of income distribution in an economy. It…

A: A Lorenz curve is basically a graphical representation of inequality in income or wealth of a…

Q: In season three of the TV show “The West Wing,”the federal government considers redefining…

A: Poverty is an economic issue that prevails in almost every country wherein the people are considered…

Q: The graph shows the Lorenz curve for income. Draw a point that shows the cumulative percentage of…

A: Lorenz curve is a graphical portrayal of the conveyance of income or wealth inside a population.

Q: What is the relationship between a Lorenz curve and a Gini coefficient? Give some examples of how…

A: The Lorenz curve is a representation of the distribution of a metric – consumption, wages,…

Q: The degree of inequality in the distribution of income in an economy is depicted in aln O Lorenz…

A: The Lorenz curve is a representation of the distribution of a metric – consumption, wages,…

Q: Suppose that the Lorenz Curve for country A is given by YA = x².2 and for country B is yB = 0.3x² +…

A: In this question the Lorentz curve is given for the two different countries, the Lorentz curve…

Q: Indicators of income inequality and poverty Country Gini coefficient Ratio of income at Poverty…

A: The "Gini coefficient," which is directly linked to the Lorenz curve, is the most commonly used…

Q: What are the Gini Coefficient and the Lorenz Curve? Be sure to explain how these terms are related…

A: Both of these are used to measure inequality associated with income/wealth. Gini coefficient/index…

Q: what are some of the dimensions of economic inequality and what is considered income?

A: Economic Inequality is generally the distinct distribution of wealth, income, resources, and…

Q: Percent of Percent of income income Beta Household percentage Lowest 20 percent Second 20 percent…

A: In an economy, Lorenz curve refers to line that shows the income inequality among the people of a…

Q: . Consider two communities. In one community,ten families have incomes of $100,000 each and…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: 4. An economist produced the following Lorenz curves for the current income distribution and the…

A: Lorenz curve is used to depict the distribution of income amongst the recipients in the form of a…

Q: (a) (4 pts) Find the Gini coefficient of income inequality for the nation with income distribution…

A: The Gini coefficient once in a while called the Gini list or Gini ratio is a proportion of factual…

Q: 1. When Lorenz curves are __________. a. more curved the greater is the degree of income inequality…

A: The Lorenz curve is the graphical representation of the inequality in the economy. The graph…

Q: 28: What is Income Inequality? 29: What is meant by a Poverty Trap? 30: How are Labor Markets…

A: Inequality associated with income can be measured by Gini index/coefficient. Poverty is a situation…

Q: A Lorenz curve is a graphical representation of wealth distribution among a population. Conduct…

A: A Lorenz curve is a graphical representation of wealth distribution or income inequality among a…

Q: what are some of the dimensions of economic inequality and what is considered income?

A: Income inequality can be defined as the stretch at which the income scenario was spread in an uneven…

Q: Discuss the concept of the “optimal amount of inequality.” What are some of the practical problems…

A: Optimal amount of inequality is alluded to the level endurable degree of inequality in the country.…

Q: Discuss the reasons behind economic inequality.

A: Inequality refers to a situation where there is unequal or different distribution of resources or…

Q: 4. Currently, the poverty threshold for a family of four is just over $25,000 a year. Among the…

A: The poverty threshold refers to the minimum level of income an individual or a family needs to…

Q: you reco

A: Income inequality is how unevenly the income is in turn being distributed throughout a population.…

Q: What is the "incentive effects" critique of of income redistribution? (Hint: This was exemplified…

A: Redistribution of income is a distribution of income from people who possess a lot of wealth to…

Q: Describe the vicious cycle of poverty. What are the consequences of this cycle?

A: Poverty- It is the condition of being extremely poor.

Q: Questions Explain three methods of measuring the income inequality of a nation? 1.kuznet ratio 2.…

A: Income inequality refer to the uneven distribution of the income generated in the economy during a…

Question

Explain why the poverty gap ratio is the better target measure of poverty than the head-
count ratio. Use diagrams to substantiate your answer. l

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

If a country had perfect income equality what would the Lorenz curve look like?
If a family of three earned 20,000, would they be able to make ends meet given the official poverty threshold?
Describe how a push for economic equality might reduce incentives to work and produce output. Then describe how a push for economic inequality might nut have such effects.
What is the difference between poverty and income inequality?
Describe how each of these changes is likely to affect poverty and inequality: Incomes rise for low-income and high-income workers, but rise more for the high-income earners. Incomes fall for low-income and high-income workers, but fall more for high-income earners.
Using two demand and supply diagrams, one for the low-wage labor market and one for the high-wage labor market, explain how a program that increased educational levels for a substantial number of low-skill workers could reduce inflame inequality.
Table 15.9 shows the share of income going to each quintile of the income distribution for the United Kingdom in 1979 and 1991. Use this data to calculate what the points on a Lorenz curve would be, and sketch the Lorenz curve. How did inequality in the United Kingdom shift over this time period? How can you see the patterns in the quintiles in the Lorenz curves?
What are some reasons why a certain degree of inequality of income would be expected in a market economy?
Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?