ECON 2005 Lecture Notes - Lecture 26: Main Source, John Rawls, Human Capital
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It can range from 0 to 1 and is measured as the area of the region between the lorenz curve and the 45 degree line divided by the max possible area. If one family earned all the income (with no one else receiving anything), the shaded area and the triangle would be the same, and the ratio would equal 1. Poverty: fo(cid:396) (cid:862)offi(cid:272)ial(cid:863) pu(cid:396)poses (cid:449)e use the (cid:862)po(cid:448)e(cid:396)t(cid:455) li(cid:374)e(cid:863) as ou(cid:396) defi(cid:374)itio(cid:374) of po(cid:448)e(cid:396)t(cid:455) (cid:271)e(cid:272)ause it is difficult to define precisely, poverty line the officially established income level that distinguishes the poor from the non-poo(cid:396). It is set as (cid:862)(cid:373)o(cid:374)e(cid:455) i(cid:374)(cid:272)o(cid:373)e(cid:863) e(cid:395)ual to th(cid:396)ee ti(cid:373)es the (cid:272)ost of the. Depa(cid:396)t(cid:373)e(cid:374)t of ag(cid:396)i(cid:272)ultu(cid:396)e"s (cid:373)i(cid:374)i(cid:373)u(cid:373) food (cid:271)udget. ((cid:1009),(cid:1005)(cid:1004)(cid:1004) fo(cid:396) fa(cid:373)il(cid:455) of (cid:1008) in 2018) The sources of household income: households derive their incomes from three basic sources, from wages or salaries received in exchange for labor, most of a(cid:373)e(cid:396)i(cid:272)a(cid:374)s" i(cid:374)(cid:272)o(cid:373)es (cid:272)o(cid:373)e p(cid:396)edo(cid:373)i(cid:374)a(cid:374)tl(cid:455) f(cid:396)o(cid:373) la(cid:271)o(cid:396).
