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Questions › JNU › JNU SIS 2016 › Q29
2 marks, −1Economics of Growth and Development › Poverty, inequality and human development › Inequality, growth and the Kuznets curveHardabout 3 min

JNU SIS 2016 Question 29: Poverty, inequality and human development

Suppose there are 5 workers in an economy and initially all the workers work in the traditional sector at a wage equal to 1 (call this initial period, period 0). In each subsequent period, one worker migrates from the traditional sector to the modern sector where wages are equal to 4. Assuming that the number of workers remains constant, then in period 5 all the workers are in the modern sector. As migration takes place, the Gini coefficient of inequality

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Poverty, inequality and human development has come up 92 times in 7 exams since 2010.

What this question tests

This question is on Inequality, growth and the Kuznets curve, part of Poverty, inequality and human development in Economics of Growth and Development.

How inequality is thought to change as an economy develops.

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