Chapter 2.3, Problem 2.65E

To determine

To calculate: the percent increase below the official poverty line and the reason of not conclude from this that poverty grew more common in these years.

Answer to Problem 2.65E

14.78%

Explanation of Solution

Given:

Poverty increased from 32476000 to 37276000

Calculation:

  $\begin{array}{c}\text{increase below poverty line}\\ \text{=}\frac{37276000-32476000}{32476000}\\ =\frac{4800000}{32476000}\\ =0.1478\\ =14.78\%\end{array}$

The percentage of increase below the official poverty line is 14.78% which will get by the difference of two poverty lines divided by the initial poverty line. It should not be concluded that poverty grew more general, because the population will also have increased during these years.