Question

Consider a society with a total population of 200. 100 people earn $3 a day and 100 earn $1 a day. The poverty line is set at $2 a day. The poverty gap ratio (PG) is expressed as: where z is the poverty line, yi is the income of individual i, q is the number of poor people (whose incomes are below the poverty line) and n is the size of the population. What is the value of the poverty gap ratio of this society? Select one: 0.750 0.500 0.250 0.125

Name: consider a society with a total population of 200 100 people earn 3 a day and 100 earn 1 a day the poverty line is set at 2 a day the poverty gap ratio pg is expressed as where z is the poverty line y
Uploaded: 2023-09-01T12:14:46-08:00
Duration: 1 min 46 s
Channel: Rashmi Sinha
Description: consider a society with a total population of 200 100 people earn 3 a day and 100 earn 1 a day the poverty line is set at 2 a day the poverty gap ratio pg is expressed as where z is the poverty line y

          Consider a society with a total population of 200. 100 people earn $3 a day and 100 earn $1 a day.  The poverty line is set at $2 a day. 
The poverty gap ratio (PG) is expressed as: 
 
where z is the poverty line, yi is the income of individual i, q is the number of poor people (whose incomes are below the poverty line) and n is the size of the population. 

What is the value of the poverty gap ratio of this society?

Select one:
 
0.750
 
0.500
 
0.250
 
0.125

Added by Patricia Patrizio C.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Rashmi Sinha

09/01/2023

Step 1

In this case, it's the 100 people who earn $1 a day, as their income is below the poverty line of $2 a day. Show more…

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Consider a society with a total population of 200. 100 people earn $3 a day and 100 earn $1 a day. The poverty line is set at $2 a day. The poverty gap ratio (PG) is expressed as: where z is the poverty line, yi is the income of individual i, q is the number of poor people (whose incomes are below the poverty line) and n is the size of the population. What is the value of the poverty gap ratio of this society? Select one: 0.750 0.500 0.250 0.125