Which will be larger for a country: pg or apg

Assignment Help Microeconomics
Reference no: EM13774667

1. Which will be larger for a country: PG or APG? Please explain. 

2. Country A and Country B have the same population of 200 million. Use the figures in the table below to calculate the head-count ratio and average poverty gap in each country. Finally, carefully interpret the results.
Income Distribution below poverty line ($1 per day) 25 cents per day 50 cents per day 75 cents per day 
Country A (millions of people) 90 30 30
Country B (millions of people) 10 60 80

3. Can the Lorenz curve slope downward? Please explain.

4. This table below reports the distribution of income in Canada and the United States. 
Quintile 1st 2nd 3rd 4th 5th
Canada 7.7 13.7 19.0 24.8 34.8
U.S. 4.5 10.7 16.6 24.1 44.1
Draw the Lorenz curves for the two countries in the same graph. Without actually calculating the Gini coefficient, use the information from the Lorenz curves and explain which country has the lower income inequality measure.

5. From the data in 3, compute the Gini coefficient for both countries. Does this agree with your answer to the previous question?

6. If all income quintiles in a country experience the same percentage increase in income, what happens to the Lorenz curve?

7. For the sake of this question, let's assume a country with a zero return to education and education is the only factor that affects income, which is $30,000 per person. What would the Lorenz curve look like? 

8. Now, let's modify the last question and say that the return to education is 20% and that those with no income earn $10,000 a year. There are five equal sized groups in the economy and the first has no education, the second has 1 year, the third has 2 years, and so on. Draw the Lorenz curve.

9. How do the Lorenz curves from 7 and 8 differ? What concept does this change illustrate?

10. Please read the article "To Beat Back Poverty, Pay the Poor" and answer this and the next two questions. First, how do these "conditional cash transfer" programs affect the average poverty gap in the countries that use them?

11. Next, what happened to the Lorenz curve and Gini coefficient in Brazil as a result of the introduction of the Bolsa Familia? Be sure to fully explain your answer.

12. Finally, what is the likely impact of Mexico's Oportunidades program on intergenerational mobility? Please explain.

13. Please read the article "Hope Springs a Trap" and answer this and the next two questions. First, from the first four paragraphs in the article, name two specific clues that led Duflo and Bardhan to believe that it is indeed the absence of optimism that played a large role in keeping people trapped in poverty.

14. What are two examples that illustrate that the poor have misconceptions (ideas that are contrary to economic findings in the area) about what they can do to escape the poverty trap?

15. What is the nature of the law in India that has led to a striking degree of convergence between goals for sons and daughters? 

Reference no: EM13774667

Questions Cloud

How you would build global awareness and understanding : Discuss in 750-1,000-words how you would build global awareness and understanding and integrate diverse social and cultural perspectives to create novel approaches to solving problems.
The health information profession and him staff : ?How does an HIM manager go about applying these to processes within the HIM department?
Security domains of a typical it infrastructure : Analyze the seven security domains of a typical IT infrastructure and determine which two of the seven you would implement first for a nationwide bank. Explain your rationale for your choice.
How much heat an energy is needed to raise a temperature : how much heat an energy is needed to raise a temperature of 100g of water from 0 celcius to 60 celcius
Which will be larger for a country: pg or apg : 1. Which will be larger for a country: PG or APG? Please explain. 2. Country A and Country B have the same population of 200 million. Use the figures in the table below to calculate the head-count ratio and average poverty gap in each country. Finall..
Examine the affordable care act : Examine the Affordable Care Act, popularly known as Obamacare. Address the following issues: Over the next ten years, who is most likely to benefit from it, and which constituencies are least likely to be benefit?
Suppose the price elasticity of demand for stocks : Suppose the price elasticity of demand for stocks is1.5. This means that for every 10 percent increase in stock prices, the quantity demanded will decline by 15 percent. Does this price elasticity make sense? Explain
Write program that inputs a word representing binary number : Write a program that inputs a word representing a binary number (0s and 1s). First your program should verify that it is indeed a binary number, that is the number contains only 0s and 1s.
What instructional strategies that promote a civic education : What are some instructional strategies or activities that would promote a civic education?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd