ECON-2220 Study Guide - Comprehensive Final Exam Guide - Latin America, Import Substitution Industrialization, Developing Country
20 Nov 2018
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The poor are individuals/households unable to meet basic needs such as good, health care, education, and shelter. The definition of basic needs might differ from place to place. Poverty line: establishes a threshold so that we can compute the rest. National governments and international agencies collect and analyze poverty data. Threshold of the minimum income needed to purchase socially-determined essentials for living (i. e. basic food needs & other basic needs) It is country-specific: considering own taste and preferences. Headcount index of poverty: proportion of the population living below or at the poverty line. It gives us a sense of the number living in poverty at any point in time. It does not measure the extent of desolation (a person could be making a month vs. another making a month would each count as poor despite tragically different realities) Proportion of population whose consumption (y) is less than or equal to the poverty line z.
