JNU SSS 2010 Question 42: Poverty, inequality and human development
Consider a country in which there are four different types of people Red, Blue, Green and Yellow. All Reds earn the same income. The same is true about the Blues, Greens and Yellows. However the Red income, the Blue income, the Green income and Yellow income can be different from each other. A distribution of income of the country (Di) specifies the Red income, Blue income, Green income and Yellow income and also the number of Reds, Blues, Greens and Yellows. The following table gives the possible income distributions for the country :
Income: Red
Income: Blue
Income: Green
Income: Yellow
Number of Individuals: Red
Number of Individuals: Blue
Number of Individuals: Green
Number of Individuals: Yellow
D1
1
2
3
4
1
1
1
1
D2
3
4
1
2
1
1
1
1
D3
5
10
15
20
1
1
1
1
D4
0·8
1·6
2·4
5·2
1
1
1
1
D5
2·5
2·5
2·5
2·5
1
1
1
1
D6
1
2
3
4
5
5
5
5
Let Gi denote the Gini coefficient for the income distribution i. Which of the following is true?
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Plain-text version
Consider a country in which there are four different types of people Red, Blue, Green and Yellow. All Reds earn the same income. The same is true about the Blues, Greens and Yellows. However the Red income, the Blue income, the Green income and Yellow income can be different from each other. A distribution of income of the country (Dᵢ) specifies the Red income, Blue income, Green income and Yellow income and also the number of Reds, Blues, Greens and Yellows. The following table gives the possible income distributions for the country: | Income: Red | Income: Blue | Income: Green | Income: Yellow | Number of Individuals: Red | Number of Individuals: Blue | Number of Individuals: Green | Number of Individuals: Yellow | D₁ | 1 | 2 | 3 | 4 | 1 | 1 | 1 | 1 | D₂ | 3 | 4 | 1 | 2 | 1 | 1 | 1 | 1 | D₃ | 5 | 10 | 15 | 20 | 1 | 1 | 1 | 1 | D₄ | 0·8 | 1·6 | 2·4 | 5·2 | 1 | 1 | 1 | 1 | D₅ | 2·5 | 2·5 | 2·5 | 2·5 | 1 | 1 | 1 | 1 | D₆ | 1 | 2 | 3 | 4 | 5 | 5 | 5 | 5 | Let Gᵢ denote the Gini coefficient for the income distribution i. Which of the following is true? (A) G₅ < G₁ = G₂ = G₃ = G₆ = G₄ (B) G₅ < G₁ = G₂ = G₃ = G₆ < G₄ (C) G₁ > G₂ > G₃ > G₄ > G₅ > G₆ (D) G₁ < G₂ < G₃ < G₄ < G₅ < G₆
Also written as: Consider a country in which there are four different types of people Red, Blue, Green and Yellow. All Reds earn the same income. The same is true about the Blues, Greens and Yellows. However the Red income, the Blue income, the Green income and Yellow income can be different from each other. A distribution of income of the country (D_i) specifies the Red income, Blue income, Green income and Yellow income and also the number of Reds, Blues, Greens and Yellows. The following table gives the possible income distributions for the country: | Income: Red | Income: Blue | Income: Green | Income: Yellow | Number of Individuals: Red | Number of Individuals: Blue | Number of Individuals: Green | Number of Individuals: Yellow | D_1 | 1 | 2 | 3 | 4 | 1 | 1 | 1 | 1 | D_2 | 3 | 4 | 1 | 2 | 1 | 1 | 1 | 1 | D_3 | 5 | 10 | 15 | 20 | 1 | 1 | 1 | 1 | D_4 | 0·8 | 1·6 | 2·4 | 5·2 | 1 | 1 | 1 | 1 | D_5 | 2·5 | 2·5 | 2·5 | 2·5 | 1 | 1 | 1 | 1 | D_6 | 1 | 2 | 3 | 4 | 5 | 5 | 5 | 5 | Let G_i denote the Gini coefficient for the income distribution i. Which of the following is true?
Poverty, inequality and human development has come up 92 times in 7 exams since 2010.
What this question tests
This question is on Axioms and properties of inequality and poverty measures, part of Poverty, inequality and human development in Economics of Growth and Development.
The properties a good inequality or poverty measure should satisfy.
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