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Demographers doing research for an international economics

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Demographers doing research for an international economics [#permalink] New post 08 Dec 2007, 07:58
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A
B
C
D
E

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Demographers doing research for an international economics newsletter
claim that the average per capita income in the country of Kuptala is
substantially lower than that in the country of Bahlton. They also
claim, however, that whereas poverty is relatively rare in Kuptala, over half the population of Bahlton lives in extreme poverty. At least one of the
demographers' claims must, therefore, be wrong.

The argument above is most vulnerable to which of the following criticisms?


A It rejects an empirical claim about the average per capita
incomes in the two countries without making any attempt to
discredit that claim by offering additional economic evidence.
B It treats the vague term "poverty" as though it had a precise and universally accepted meaning.
C It overlooks the possibility that the number of people in the two countries who live in poverty could be the same even though the percentages of the two populations that live in poverty differ markedly.
D It fails to show that wealth and poverty have the same
social significance in Kuptala as in Bahlton.
E It does not consider the possibility that incomes in
Kuptala, unlike those in Bahlton, might all be very close to the
country's average per capita income.
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 [#permalink] New post 08 Dec 2007, 11:31
Answer is E.

Let's say K has an average income of $40,000
Let's say B has an average income of $60,000

K has a lower average, but maybe all their citizens make between $39,000 and $41,000. The wealth is equally distributed and nobody is in poverty, they're all near the average

B has a higher average, but maybe 50% of their population makes $20,000 and the other half makes $100,000. They have a higher average, but because the money isn't divided up evenly they have more poverty.

This is what E is referring to.
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 [#permalink] New post 10 Dec 2007, 09:24
E

Low per capita and low poverty levels can only mean people are close around the mean

Higher per capita but high poverty means there is a wide gap between the righ and the poor with the rich pushing up the per capita
  [#permalink] 10 Dec 2007, 09:24
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