Economics Principles: Measuring Inequality

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What is the MPI computed as?

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

What is the headcount ratio H?

The percent of people living in multidimensional poverty

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

It satisfies dimensional monotonicity

What does the example of Bangladesh and Pakistan illustrate?

That multidimensional poverty can be different from income poverty

What is true about most Latin American countries?

They have higher multidimensional poverty than income poverty

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

Headcount ratio H

What does the average intensity of deprivation A represent?

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

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

Because it provides a more comprehensive picture of poverty

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

The MPI and income poverty are about the same

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

Ethiopia is more multidimensionally poor than Tanzania

Test your understanding of the principles of measuring inequality in economics, including the scale of independence principle and the population independence principle. Learn how to apply these principles to real-world scenarios and evaluate the effectiveness of different measures of inequality.

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