(a) Suppose that your professor asks you to compare China and India based on income inequality. Which measure would you use and explain how would you determine which country is doing better based on the chosen measure? (b) Suppose that your professor asks you to compare China and India based on economic development. Which measure would you use and explain how would you determine which country is dbing better based on the chosen measure?

(a) Suppose that your professor asks you to compare China and India based on income inequality. Which measure would you use and explain how would you determine which country is doing better based on the chosen measure? (b) Suppose that your professor asks you to compare China and India based on economic development. Which measure would you use and explain how would you determine which country is dbing better based on the chosen measure?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter20: Poverty, Inequality, And Discrimination

Section: Chapter Questions

Problem 3DQ

See similar textbooks

Similar questions

According to the News Wire “Inequality,” what is the average per capita income in nations where the highest-income decile gets; (a) over 45 percent of totalincome? (b) less than 30 percent of total income?
How do gains in income inequality influence economic growth and expenditure rates?
What is the urban inequality rate compared to national inequality rate in Rio de Janeiro? Give a comparison of urban poverty and urban inequality rates in Rio.
What is the recent policies for Health, Education and Income Generation which do you think can reduce the issue of inequality?
How does this document help answer the question, “How should the US reduce economic inequality?”
Select all facts about the evolution of inequality in the world between 1960 and 2017? U Inequality at the individual level has decreased. The proportion of poor countries has increased. Inequality at the individual level did not increase as much as inequality at the country level. Inequality of the real per capita GDP across countries has increased. Inequality at the individual level has increased. The proportion of poor countries has decreased. Inequality of the real per capita GDP across countries has decreased. Inequality at the individual level did not decrease as much as inequality at the country level.
How is inequality bad for the economy?
Economists experience difficulties in accurately measuring income inequality because of which of the following? Choose one or more: A. The Gini index calculation discriminates against the poor in developed economies. B. Government programs are inefficient and difficult to monitor. C. large, underground economies that lack the reporting of income to the government D. Measurements tend to use "before tax" income, not "after tax" income (disposable income), which is the income people actually have available to purchase goods and services. E. The population size of an economy impacts the distribution of data, causing large economies to show more inequality than smaller economies. F. do-it-yourself production of goods and services (such as growing own food or making own clothing) that are not bought or sold in the market G. in-kind transfers where goods and services are given as aid to the poor instead of cash
What is income inequality in economics. Define it with the help of example.
The following table shows income distribution data for 2015 and 2020 from the World Bank in Colombia and Dominican Republic respectively. Quintile Colombia Lowest 20% Second 20% Third 20% Fourth 20% Highest 20% a. 2015 3.8 7.9 12.5 20 55.8 2020 2.8 7.4 11.9 19.6 58.3 Dominican Republic 2020 6.2 10.7 14.9 21.7 46.5 2015 5 9.3 13.8 20.9 51 Given the adoption of the Sustainable Development Goals (SDGs) by the UN in September 2015, what can you say about the effect on relative income inequality in these two countries? Can it be illustrated graphically? b. Consider a 12-person economy where the individuals are employed equally across the sectors. If the modern urban wage = £8, the informal urban wage = £3, and the tradition rural income = £1, what is the squared poverty gap index (P₂) given that the poverty line = £1.25? Suppose that rural income now rises to £2, other things being equal, how would you characterise and show this type of growth?