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# Demographers doing research for an international economics

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Intern
Joined: 31 Jan 2006
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Demographers doing research for an international economics [#permalink]

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12 Feb 2006, 18:04
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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 Luptala 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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Director
Joined: 26 Sep 2005
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12 Feb 2006, 18:28
C???

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Intern
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12 Feb 2006, 18:59

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Manager
Joined: 18 Dec 2005
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12 Feb 2006, 21:03

E should be it.

E says that majority of Kuptala's population may have incomes close to the per-capita number whereas the upper class in Bahlton may be extremely wealthy pushing the country's per-capita income substaintially high. Therefore the paradox can be explained.

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Senior Manager
Joined: 11 Jan 2006
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13 Feb 2006, 10:19
picked C on the first go but reasoning out after knowing the OA E seems convincing... but on exam i cld ve picked C
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vazlkaiye porkalam vazltuthan parkanum.... porkalam maralam porkalthan maruma

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Director
Joined: 24 Oct 2005
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13 Feb 2006, 11:03
I think E
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VP
Joined: 20 Sep 2005
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13 Feb 2006, 22:02
Clear E for me.

Mean/Median problem.....

Let poverty = 5.

K ( 5,5,5,5 ).....all 5....Standard deviation low...

B ( 1,1,1,1,46)....Standard deviation...high....

If country K has most of it population earning near the national average...most people will not be poor...unless the average itself is below poverty line ( which cannnot be assumed ).

If country B has unequal income distribution, then many people will be poor.

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Director
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13 Feb 2006, 22:39
I ll go with C
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IE IMBA 2010

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Current Student
Joined: 29 Jan 2005
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19 Feb 2006, 00:24
I think both (C) and (E) are correct.

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19 Feb 2006, 00:24
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# Demographers doing research for an international economics

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