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

Similar questions

Suppose you make an annual contribution of P11,036 each year to a college fund for a niece. He is 5 years now, and you will start next year and make the last deposit when he is 21. The fund is a money market account earning 8.82% per year. What will it be worth immediately after the last deposit? Write your answer in two decimal places.
No excel, show all work. Thanks
Jean deposited P2,000, P2,500 and P3,000 at the end of the 2nd year, 3rd year and 4th year, respectively in a savings account which earned 0.13 per annum. Determine the future worth of the deposit? Note: Interest is already shown in decimal form. Do not round in between solution. No need to put UOM and comma. Final answer round to the nearest WHOLE NUMBER.
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?
Solutions please for Q39,Q40,Q41,Q42,Q43??
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…
40. Determine the exact simple interest on P10,000 for the period from January 10 to June 15, 2002, if the rate of simple interest is 12%.