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Economics Principles: Measuring Inequality

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Economics Principles: Measuring Inequality

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Questions and Answers

What is the MPI computed as?

The sum of the headcount ratio H and the average intensity of deprivation A

The difference between the headcount ratio H and the average intensity of deprivation A

The ratio of the headcount ratio H to the average intensity of deprivation A

The product of the headcount ratio H and the average intensity of deprivation A (correct)

What is the headcount ratio H?

The percent of people living in multidimensional poverty (correct)

The total number of poverty indicators

The number of people living in multidimensional poverty

The percent of weighted indicators for which poor households are deprived on average

What is an important property of the adjusted headcount ratio HA?

It is always less than the simple headcount ratio

It is only used for income poverty

It satisfies dimensional monotonicity (correct)

It is always equal to the simple headcount ratio

What does the example of Bangladesh and Pakistan illustrate?

That multidimensional poverty can be different from income poverty (D) Signup and view all the answers

What is true about most Latin American countries?

They have higher multidimensional poverty than income poverty (A) Signup and view all the answers

What is the name of the ratio that is multiplied by the average intensity of deprivation to compute the MPI?

Headcount ratio H (C) Signup and view all the answers

What does the average intensity of deprivation A represent?

The percent of weighted indicators for which poor households are deprived on average (B) Signup and view all the answers

Why is the MPI a better measure of poverty than income poverty?

Because it provides a more comprehensive picture of poverty (A) Signup and view all the answers

What is the relationship between the MPI and income poverty in Colombia?

The MPI and income poverty are about the same (B) Signup and view all the answers

What is the difference between Ethiopia and Tanzania in terms of multidimensional poverty?

Ethiopia is more multidimensionally poor than Tanzania (D) Signup and view all the answers