Suppose the village of Utopia has 5 households, with expenditure levels [1, 4, 5, 9 and 13]. Suppose the poverty line is 5. Draw the poverty profile for Utopia, including the poverty line. Calculate P0, P1, and P2 for this village. Suppose you have a budget of 4 to spend on reducing poverty in this village. How you would allocate this budget if your objective was to mostly reduce P0, P1, or P2, respectively?
Suppose the village of Utopia has 5 households, with expenditure levels [1, 4, 5, 9 and 13]. Suppose the poverty line is 5. Draw the poverty profile for Utopia, including the poverty line. Calculate P0, P1, and P2 for this village. Suppose you have a budget of 4 to spend on reducing poverty in this village. How you would allocate this budget if your objective was to mostly reduce P0, P1, or P2, respectively?
Chapter33: Income, Income Distribution, And Poverty
Section: Chapter Questions
Problem 8E
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Question
Suppose the village of Utopia has 5 households, with expenditure levels [1, 4, 5, 9 and 13]. Suppose the poverty line is 5.
-
Draw the poverty profile for Utopia, including the poverty line.
-
Calculate P0, P1, and P2 for this village.
-
Suppose you have a budget of 4 to spend on reducing poverty in this village. How you would allocate this budget if your objective was to mostly reduce P0, P1, or P2, respectively?
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