Economics Suppose that at date 1 the distribution of income is (1, 2, 3), while later, at date 2, it is found to be (2, 3, 4). Verify for yourself that for a poverty line of 2 the reduction in the headcount index of poverty is entirely due to growth in the mean, i.e., that the redistribution component is zero. Now suppose the distribution at date 2 is (1.5, 1.5, 3) (as in question 1). Is the change in poverty now due entirely to redistribution? Discuss how would your answer depends on what measure of poverty you use.

Economics Suppose that at date 1 the distribution of income is (1, 2, 3), while later, at date 2, it is found to be (2, 3, 4). Verify for yourself that for a poverty line of 2 the reduction in the headcount index of poverty is entirely due to growth in the mean, i.e., that the redistribution component is zero. Now suppose the distribution at date 2 is (1.5, 1.5, 3) (as in question 1). Is the change in poverty now due entirely to redistribution? Discuss how would your answer depends on what measure of poverty you use.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Michigan Tech received a donation of $436,133 to be used for scholarship funds. The money will be…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: Question 5 For the below cash flow diagram, determine the equivalent present worth Y for a given…

A: The problem is asking us to find the present worth (Y) of a series of future cash flows. The cash…

Q: The Fischer-Tropsch (F-T) process was developed in Germany in 1923 to convert synthesis gas (i.e., a…

A: An amount of money's annual worth is its value today. Amounts that are worth more now than they will…

Q: I put $500 in a bank a year ago at an interest rate that compounded annually. When I withdrew my…

A: Given: Amount received today = $540 Amount deposited a year ago = $500 Number of years = 1 Rate of…

Q: An elderly lady decided to distribute most of her considerable wealth to charity and to keep for…

A: Perpetuity(P) refers to the sequence of infinite payments received on the initial deposit(D). The…

Q: You are eligible for a 30 year fixed-rate home mortgage with an interest rate of 3.6% per year. If…

A: Present value is the concept that states that an amount of money invested today is worth more than…

Q: What is the IRR?

A: The internal rate of return (IRR) is a financial computation that is used to calculate the…

Q: If you sell in March a bond future contract for 125 that matures on June 30 of the same year, and at…

A: Rate at which bond future contract is sold in March = $125 Maturity date = June 30 And price at the…

Q: A. How much money should be deposited each year for 12 years if you wish to have $25,200 in the…

A: The future worth formula is FV=PV(1+i)n , where the PV rises for each period into the future by a…

Q: You deposit $1,200 in an account each year for 5 years, starting at the end of Year 1. At the end of…

A: Present value is the value of investment in today's dollar.Future value is the value of investment…

Q: Suppose you were given a one time gift of $10,000 to put into a savings account. The account earns…

A: Compound interest is the rate of interest that is used to calculate the value added to a loan or a…

Q: When looking at Say's law, which of the following is true? The focus is on the short run. O Every…

A: According to Say's Law the supply generates its own demand. In the production process, sufficient…

Q: Mac has deposited $6,000 in a money market account with a variable interest rate. The account…

A: Deposited amount = $6000 Time period = 9 months The interest rate is 8%, 9%, and 8%.

Q: How much money should be deposited each year for 12 years if you wish to withdraw $309 each year for…

A: let x Amount Deposit for 12 years. withdrawal = 309 for 5 years starting from the being of the end…

Q: In 2012 the maximum Social Security deposit by an individual was $8, 386.75. Suppose you are 31 and…

A: Future value is the sum of money that a certain present sum of money becomes after compounding at…

Q: Home heating accounts for approximately one-third of energy consumption in a typical U.S. household.…

A: 1. Cost of corn-burning stove: $2,4002. Estimated annual savings: $3003. Lifespan of the stove: 11…

Q: ack Rabbit has saved $10,000 annually for the last 35 years in an account eaming 8%. If Jack…

A: Jack saved $10,000 over last 35 yearsThe interest rate is 8%. Jack estimates he will be living for…

Q: Linda deposits $60,000 into an account that pays simple interest at a rate of 6% per year. Bob…

A: Simple interest:Simple interest is the amount that you get on your deposits. it is fixed not…

Q: It's October 21 and the air conditioner at the Brown household has just gone out. Fortunately, they…

A: FV = 3,500 n = (deposit from 21 Jan to 21 may) i.e. 5 months r = 1.25% per month

Q: You are going to put $X into an account each year for 5 years, beginning in Year 1. Then, from Years…

A: We have been given the following cash flows:Cash outflows from year 1 (beginining in year 1) to year…

Q: 8. Jones Corporation borrowed P9,000 from Brown Corporation on Jan. 1, 1978 and P12,000 on Jan. 1,…

A: Cashflow shows the stream of cash we get within the period. It includes the cash paid and cash…

Q: When a uniform series begins at a time other than at the end of period 1, it is called: Annual worth…

A: In engineering economics, a "uniform series" or "ordinary annuity" refers to a sequence of equal…

Question

Economics
Suppose that at date 1 the distribution of income is
(1, 2, 3), while later, at date 2, it is found to be (2, 3,
4). Verify for yourself that for a poverty line of 2 the
reduction in the headcount index of poverty is
entirely due to growth in the mean, i.e., that the
redistribution component is zero. Now suppose
the distribution at date 2 is (1.5, 1.5, 3) (as in
question 1). Is the change in poverty now due
entirely to redistribution? Discuss how would your
answer depends on what measure of poverty you
use.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

No excel, show all work. Thanks
Is this example also an example of economically rational decision making? “In 2019, I started my small business by selling prints of my photographs. Now it’s temporarily closed. During this time I had the option of shipping my prints through USPS or UPS. I decided to ship my prints through USPS instead of UPS since it was a bit expensive at the time. My prints that were shipped out from USPS arrived in time and came in good condition. The opportunity cost is the cost of UPS shipping.”
Calculate the future worth of 20 annual $4,000 deposits in a savings account that earns 8% compounded monthly. Assume all deposits are made at the beginning of each year. a) $196,010 b) $189,673.78 c)$189,244.63 d)$199.279
What will a $90,000 house cost 10 years from now if the price appreciation for homes over that period .averages 3% compounded annually?
The nominal interest rate is 14% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $10,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is ___.
If $4,000 is borrowed today and $8,955 is paid back in 10 years, what interest rate compounded annually has been earned? % Round entry to one decimal place. Tolerance is ±0.2.
Please
You know that paying yourself by depositing money in a savings account is a prudent start to your retirement plan. You determined that, based on your other obligations, you can save 6,375.00 per year via an annual, single year-end deposit. You are 35 years old now, so your money will grow for the next 30 years until you turn 65. You will open a savings account at the Wells Fargo branch near your home. Its savings accounts are paying 6% interest. The following table shows the future value factors for various periods and interest rates: Future Value of an Annuity Factor Year 2% 3% 5% 6% 8% 9% 10% 10 10.950 11.460 12.578 13.180 14.487 15.190 15.937 12 13.412 14.190 15.917 16.870 18.977 20.140 21.384 15 17.293 18.600 21.578 23.270 27.152 29.360 31.772 20 24.297 26.870 33.066 36.780 45.762 51.160 57.274 25 32.030 36.460 47.726 54.860 73.105 84.700 98.346 30 40.567 47.570 66.438 79.060 113.282 136.300 164.491 35 49.994 60.460 90.318 111.430 172.314 215.700…
I think the question b should be $500,000 NOT $5,000,000
Determine the present equivalent value of the cash-flow diagram shown below when the annual interest rate, i, varies as indicated. P=? ܂ $1,000 i₁ = 8% 1 $2,000 The present equivalent value is $ 2 = 15% 2 i3 = 12% $1,000 ig = 8% 3 Years ܗܘܢ ܗܝ (Round to the nearest cent.) 4 $2,000 15 = 8% 16 = 12% 5 Click the icon to view the interest and annuity table for discrete compounding when i = 8% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 12% per year. 6
The nominal interest rate is 10% compounded semiannually. What amount will need to be deposited every six months to be able to have enough money to pay three annuity payments of $10,000 for three years beginning at the end of year seven? The deposits begin now and continue every six months until six deposits have been made. The amount to be deposited every six months is ___.