Consider the following distribution of income in a 12-person economy, with the modern urban wage F1F1F1S1F1F1F10 3, the traditional rural income F1F1F1S1F1F1F10 1, and the informal urban wage F1F1F1S1F1F1F10 2: (1,1,1,1,2,2,2,2,3,3,3,3).The poverty line F1F1F1S1F1F1F10 1.25.Suppose rural incomes are raised to 1.5 through expanded agricultural exports.What happens to relative inequality? Absolute poverty? Calculate the Ahluwalia-Chenery welfare index for terciles (3 fractiles) under GNP weights and equal weights.Why is the equal-weighted index higher?

Inequality decreases.Poverty is eliminated.ACWI F1F1F1S1F1F1F10 0.083 with GNP weights.ACWI F1F1F1S1F1F1F10 0.167 with equal weights.

The following income distribution data are for Brazil. \[\begin{array} { l c } \hline { \text { Quintile } } & \text { Percent Share } \\ \hline \text { Lowest } 20 \% & 3.0 \% \\ \text { Second quintile } & 6.9 \% \\ \text { Third quintile } & 11.8 \% \\ \text { Fourth quintile } & 19.6 \% \\ \text { Highest } 20 \% & 58.7 \% \\ \text { Highest } 10 \% & 43.0 \% \end{array}\] (a) Carefully graph the Lorenz curve, labeling the axes.

To graph the Lorenz curve based on the g

What conclusion can be reached from the following data on income shares? \[\begin{array}{l} ~~~~~~~~~~~~~~~~~~~~~~\text { Percent-age of Income Receivad by }\\ \hline \begin{array} { l c c } & \text { Lowat 40\% } & \text { Highast 20\% } \\ \hline \text { Bangladesh } & 17.3 & 45.3 \\ \text { Indonesia } & 14.4 & 49.4 \end{array} \end{array}\]

A) absolute poverty is more widespread in Bangladesh B) the size distribution of income is more unequal in Indonesia C) Bangladesh had adopted a strategy of redistribution with growth D) growth in Bangladesh is calculated using poverty weights rather than income weights A) absolute poverty is more widespread in Bangladesh B) the size distribution of income is more unequal in Indonesia C) Bangladesh had adopted a strategy of redistribution with growth D) growth in Bangladesh is calculated using poverty weights rather than income weights

Exam 5: Poverty, Inequality, and Development

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: (1,1,1,1,2,2,2,2,3,3,3,3).The poverty line  1.25.Suppose rural incomes are raised to 1.5 through expanded agricultural exports.What happens to relative inequality? Absolute poverty? Calculate the Ahluwalia-Chenery welfare index for terciles (3 fractiles) under GNP weights and equal weights.Why is the equal-weighted index higher?

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Question 1

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Inequality decreases.Poverty is eliminated.ACWI  0.083 with GNP weights.ACWI  0.167 with equal weights.

With modern sector enlargement growth, inequality will

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What are factor price distortions, and what are their major causes in developing countries?

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Factors of production are paid prices that do not reflect the prices that would prevail under a True competitive market, that is, their scarcity prices.Prices for capital and intermediate goods are often artificially low because of tax rebates, investment subsidies, high capital depreciation allowances, ceilings on interest rates etc.Wages are often above opportunity costs due to trade union, political, and other pressures.

The following income distribution data are for Brazil. Quintile Percent Share Lowest 20\% 3.0\% Second quintile 6.9\% Third quintile 11.8\% Fourth quintile 19.6\% Highest 20\% 58.7\% Highest 10\% 43.0\% (a) Carefully graph the Lorenz curve, labeling the axes.

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Question 4

Explain the difference between size and functional measures of income distribution.

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Question 5

Consider the following distribution of income in a 12-person economy, with the modern urban wage  10, the traditional rural income  2, and the informal urban wage  4: (2,2,2,2,4,4,4,4,10,10,10,10). (a) Suppose rural incomes are raised to 3, other things equal.Show the change using the Lorenz curve.How would this type of growth be characterized? (It is suggested that you use the Fields growth decomposition in answering.This shows traditional sector enrichment growth.) (b) Calculate the Ahluwalia-Chenery welfare index for terciles (3 fractiles) under GNP weights and equal weights.Which index is higher and why?

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Question 6

The poverty gap is the

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Question 7

What is a Lorenz curve? Draw one, labeling the axes.

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Question 8

Which of the following policies might increase labor intensity in industry?

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Question 9

Kuznets' inverted-U hypothesis

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Question 10

One of the characteristics of the poor is that they are

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Question 11

About how many girls and women are said to be "missing" in LDCs?

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Question 12

The functional distribution of income refers to the distribution of income between

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Question 13

What conclusion can be reached from the following data on income shares? \nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace\nobreakspace Percent-age of Income Receivad by Lowat 40\% Highast 20\% Bangladesh 17.3 45.3 Indonesia 14.4 49.4

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Question 14

Discuss some policies or strategies that would give firms an incentive to substitute labor for capital within modern production techniques.

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Question 15

The Ahluwalia-Chenery welfare index

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Question 16

According to Kuznets, in the process of development inequality in an economy will normally

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Question 17

Generally speaking, higher income countries tend to have less income inequality than low income countries, however this does not always hold true.What could cause a low income country to have low income inequality?

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Question 18

Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404, it is possible to conclude that both Egypt and Australia have

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Question 19

Which of the following policies may decrease the level of capital intensity in industry?

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Question 20

Showing 1 - 20 of 45

With modern sector enlargement growth, inequality will

What are factor price distortions, and what are their major causes in developing countries?

The following income distribution data are for Brazil. Quintile Percent Share Lowest 20\% 3.0\% Second quintile 6.9\% Third quintile 11.8\% Fourth quintile 19.6\% Highest 20\% 58.7\% Highest 10\% 43.0\% (a) Carefully graph the Lorenz curve, labeling the axes.

Explain the difference between size and functional measures of income distribution.

The poverty gap is the

What is a Lorenz curve? Draw one, labeling the axes.

Which of the following policies might increase labor intensity in industry?

Kuznets' inverted-U hypothesis

One of the characteristics of the poor is that they are

About how many girls and women are said to be "missing" in LDCs?

The functional distribution of income refers to the distribution of income between

Discuss some policies or strategies that would give firms an incentive to substitute labor for capital within modern production techniques.

The Ahluwalia-Chenery welfare index

According to Kuznets, in the process of development inequality in an economy will normally

Generally speaking, higher income countries tend to have less income inequality than low income countries, however this does not always hold true.What could cause a low income country to have low income inequality?

Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404, it is possible to conclude that both Egypt and Australia have

Which of the following policies may decrease the level of capital intensity in industry?

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Population Growth and Economic Development: Causes, Consequences, and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market, State, and Civil Society

International Trade Theory and Development Strategy

Balance of Payments, Debt, Financial Crises, and Stabilization Policies

Foreign Finance, Investment, and Aid: Controversies and Opportunities

Finance and Fiscal Policy for Development

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