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?

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

What is true about most Latin American countries?

<p>They have higher multidimensional poverty than income poverty (A)</p> 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?

<p>Headcount ratio H (C)</p> Signup and view all the answers

What does the average intensity of deprivation A represent?

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

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

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

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

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

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

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

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