If the distribution of income in country E is (1, 2, 2, 3, 5) and in country F it is (2, 1, 2, 3, 5)…
Poverty is the same in E and F by the headcount measure. Each country has three of its five incomes below the poverty line of 2.5, giving a headcount ratio of 3/5, or 60%.…
Choose your answer
If the distribution of income in country E is (1, 2, 2, 3, 5) and in country F it is (2, 1, 2, 3, 5) and the poverty line in both of the countries is 2.5 by headcount measure, then which country has more poverty?
Answer and explanation
Correct answer C
Poverty is the same in E and F by the headcount measure. Each country has three of its five incomes below the poverty line of 2.5, giving a headcount ratio of 3/5, or 60%. Changing the order of the same incomes does not change that proportion.
Practice for these exams
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West Bengal SET (WB SET)