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Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3.
based on following information
1) What is the level of absolute poverty in this economy? what policy (only one) would you adopt to mitigate this poverty?
2) Suppose rural incomes are raised to 1.5 though expanded agricultural expects. what will happen to the Gini coefficient of this economy? why?
Will there be significant progress on the poverty front, because of an increase in GDP.
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On Feb. 12, 2015, you buy a bond that pays a semi-annual coupon of $100 on Feb. 12 (including today) and Aug. 12 until the final coupon payment on Feb. 12, 2018. In addition, the bond will pay $10,000 on Feb. 12, 2018. What is the maximum price you c..
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Suppose the United States sets a limit on the number of tons of sugar that can be imported each year. This is an example of a(n )?
Illustrate what are the pros and cons of using expansionary and contractionary fiscal policy tools under the following scenarios: depression, recession, and robust economic growth.
Why would we expect that the price elasticity of demand for the product of an individual firm would typically be greater than the price elasticity of demand for the product overall.
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Illustrate what would happens to P* if there is a decrease in demand followed by an increase in supply followed by another decrease in demand.
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