The per-capita food poverty line in Guatemala was 7,596 pesos. Use this food poverty line to calculate all three versions of the Foster-Greer-Thorbeck (FGT) index. Use income per capita in pesos.

 

Calculate the FGT when  = 0 (Headcount Poverty Index) and briefly explain what it means.

 

Calculate the FGT when  = 1 (Poverty Gap Index) and briefly explain what it means.

 

Calculate the FGT when  = 2 (Severity of Poverty Index) and briefly explain what it means.

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Here are the calculations for the three versions of the FosterGreerThorbecke FGT index using the giv... View the full answer