LABOR ECONOMICS LL W/ ACCESS >IC<
LABOR ECONOMICS LL W/ ACCESS >IC<
7th Edition
ISBN: 9781260144772
Author: BORJAS
Publisher: MCG CUSTOM
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Chapter 7, Problem 13P

a)

To determine

The country with more positively skewed income distribution.

b)

To determine

The country which develop faster.

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How is absolute poverty measured, in comparison to the distribution of national income?  Write down a statistic for each measurement. List 3 countries in Latin America with extremely high rates of absolute poverty and 3 countries with very high income inequality.  What are 2 factors which may have increased absolute poverty rates throughout the region’s history?  Finally, provide 2 factors which have increased income inequality in Latin America throughout its history.
In an economy, over the last decade, each of the top five decile groups has experienced a fall in their share of total income. In contrast, the bottom five decile groups have experienced a substantial increase in their share of total income.   It can be concluded that, over this period, the distribution of income is most likely to have become   A more equal B more equal but less equitable C more equitable D more equitable but less equal
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