A society consists of four individuals with the following incomes 200, 220, 300 and 320. he poverty line is 250. The poverty gap index is then. A)0.05 B)0.08 C)0.16 D)20.0
poverty gap index, which adds up the extent to which individuals on average fall below the poverty line, and expresses it as a percentage of the poverty line. More specifically, define the poverty gap (Gi) as the poverty line (z) less actual income (yi) for poor individuals; the gap is considered to be zero for everyone else.
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