In 2003, the UN Development Program estimated that a 1-percent LDC per capita consumption growth, with income inequality unchanging, would reduce the poverty percentage by _________ percent yearly?
Correct answer: B. 2
- A. 0
- B. 2
- C. 6
- D. 0.5
Explanation
The cited UNDP estimate used a rule of thumb that a 1 percent rise in per-capita consumption, with inequality unchanged, reduces the poverty rate by about 2 percent. This is a proportional reduction in poverty, not a two-percentage-point fall in every case.
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