Question

6. Below is the income distribution of country X and Y. The citizens’ income are ranked from the lowest to the highest in the bracket (currency unit: $). Suppose the poverty line is $2000.

Country X: $ (750, 1100, 2500, 6000)

Country Y: $ (450, 900, 1100, 1600, 2400, 2500, 3000, 5000)

1. Please draw the parade of dwarfs for the two countries respectively. (4pts)
2. Please calculate the headcount poverty rate for the two countries. Compare your results to draw conclusions on which country’s poverty situation is more severe. (4pts. Note: please show the steps clearly.)
3. Please calculate the poverty gap index for the two countries. Compare your results to draw conclusions on which country’s poverty situation is more severe. (4pts. Note: please show the steps clearly.)

Answer 1

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