True/False with a short explanation
1. Corruption tends to put the heaviest burden on poorer households.
2. One potential source of selection bias in Jensen’s paper on mobile phones in Kerala, India is that fishermen without a cellphone can still benefit from the “treatment”.
3. Two countries with the same Gini coefficient have the same Lorenz curve.
4. Limited access to insurance is often a constraint faced by smallholder farmers that hinders agricultural productivity.
1) Solution: True
Explanation: Corruption causes a rise in income inequality; and the
poorest households are hardest by corruption
2) Solution: False
The spread of mobile phones in Kerala, India caused the fishermen
to start selling their catch outside their domestic markets
3) Solution: False
Explanation: It will be not necessarily that the nations with same
Gini coefficient have the same Lorenz curve. The reason is that
although they have the same income however may not have the same
income distribution
4) Solution: True
Explanation: The smallholder farmers usually have limited access to
insurance and this has a significant impact on production
activities
True/False with a short explanation 1. Corruption tends to put the heaviest burden on poorer households....
State whether statement is TRUE/ FALSE and briefly Justify reason for it 1. Two countries with the same Gini coefficient have the same Lorenz curve. 2. Limited access to insurance is often a constraint faced by smallholder farmers that hinders agricultural productivity. 3. When applied to real-world data, the Solow model does pretty well in explaining how amounts of capital and labor can impact aggregate production. 4. The Total Poverty Gap is the total income needed to eliminate poverty, normalized...