Development Gap and Poverty Measurement

Which of the following is classified as a low-income country?

Identify the country that is categorized as a lower middle-income country.

Which of the following countries is NOT listed as low-income?

Among these countries, which one appears in the low-income category?

Which country is cited as a lower middle-income but is geographically in Asia?

What is the ratio of income per head of the richest to the poorest country?

Which statistical measure is used to assess the average sum of squared deviations in per capita income?

What must occur for the relative income gap between countries to narrow?

What is the purpose of the coefficient of variation in income inequality measurement?

What concept is derived from the Lorenz curve and widely used to measure income inequality?

What is the primary unit of measurement in world or global inequality?

How does weighted international inequality differ from international inequality?

What does the Kuznets ratio measure?

Which measure provides insight into income distribution at the extremes?

What is a significant limitation of using a single statistic to analyze income distribution?

Which of the following statements is true regarding different measures of inequality?

In the context of income inequality analysis, what does a high Gini ratio potentially signify?

What key aspect is typically overlooked when measuring using the Gini ratio?

What relationship is commonly observed among the various measures of inequality over time?

Which of the following options is NOT a focus of the weighted international inequality measure?

Development Gap

The income gap between the richest and poorest countries is approximately 700:1.
Low-income countries have a ratio of income to high-income countries of about 60:1.
Historical data indicate that this relative income gap is unprecedented.

Low-Income and Lower Middle-Income Countries

A list of low-income countries includes Afghanistan, Bangladesh, Burundi, and Ethiopia among others.
Lower middle-income countries include India, Bolivia, and Sri Lanka.

Statistical Measurements of Income Dispersion

Standard deviation (SD) is used to measure the average deviation of each country's income from the mean income.
Sigma divergence and convergence refer to movements in income ratio over time.
The coefficient of variation normalizes SD, addressing the correlation between mean and SD.

Gini Ratio and Lorenz Curve

The Gini ratio, derived from the Lorenz curve, measures income inequality based on population distribution.
Three concepts of inequality are:
- International inequality treats each country as a unit.
- Weighted international inequality weights countries by population size.
- Global inequality measures differences at the individual level within countries.

Kuznets Ratio

The Kuznets ratio compares the income of the poorest 10% of the world's population with the richest 10%.
This metric can provide insights into income inequality and social justice that extend beyond the Gini ratio.

Lorenz Curve Distribution

The Lorenz curve visually represents income distribution versus population percentage.
Low-income countries receive only 2% of global income, despite having 9% of the population.
Rich countries account for 75% of global income but consist of only 19% of the population.

Poverty Measurements

The poverty gap at $1.90 a day (2011 PPP) reflects significant poverty levels:
- Low-income: 18.6%
- Lower middle income: 4.69%
- Sub-Saharan Africa: 16.47%

World Bank's Focus on Poverty

The World Bank emphasizes poverty eradication, defining absolute poverty in terms of severe deprivation of basic human necessities.
Historical quotes from former World Bank presidents indicate a progressive commitment to measuring development performance by poverty reduction metrics.

Please use this form to submit feedback or report bugs. You can find answers to most questions in our Help Center.