Neco Model Questions Vol1 2019 Economics Question 19
Practice objective / multiple choice question 19 from the 2019 Neco Model Questions Vol1 Economics examination.
Country A had a GNI per capita of \(\$4{,}000\) in 2015. Over the next three years the GNI per capita grew at an average annual rate of \(5\%\). During the same period the Gini coefficient rose linearly from \(0.35\) to \(0.40\). The national poverty line is set at \(\$2{,}000\). Assuming the proportion of the population below the poverty line each year can be approximated by \(P = \frac{1}{2}\times Gini \times \frac{\text{Poverty line}}{\text{GNI per capita}}\), calculate the change in poverty incidence (in percentage points) from 2015 to 2018. Give your answer to two decimal places (a negative value indicates a decline).
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About This Question
This is Neco Model Questions Vol1 2019 Economics Question 19. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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