Question

In: Economics

The income level of 4 individuals in country A are $150, $140, $210, and $220. The...

The income level of 4 individuals in country A are $150, $140, $210, and $220. The poverty line is $200. The HCR, PG, PGI, TPG. and SPGI are

A: 50%; 27.5; 20; 110; 0.058

B: 50%; 27.5; 13.75; 110; 0.038

C. 50%; 20; 13.75; 80; 0.038

D. 50%; 27.5; 16.75; 140; 0.068

Solutions

Expert Solution

PG = poverty line income - average income

= 200 - (150+140+210+220) / 4

= 200 - 180

= 20

TPG = 4 individual total Poverty line Income - 4 individuals incomes

= 800 - 150 - 140 - 220 - 210

= 80

Since there's only one answer with PG=20 and TPG= 80

Hence, Answer: C. 50%; 20; 13.75; 80; 0.038


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