Question

In country \(\mathrm{A}\), the population is 300 million and 50 million people are living below the poverty line. What is the poverty rate?

Short answer

In country A, the poverty rate is approximately \(16.67\%\) of the total population.

Step-by-step solution

Identify the given values

In this exercise, we are given the following values: - Total population of the country (T) = 300 million - Number of people living below the poverty line (P) = 50 million

Calculate the poverty rate

To calculate the poverty rate, we will use the following formula: Poverty rate = (P / T) * 100 Plug in the given values: Poverty rate = (50 / 300) * 100

Simplify the expression

Now, we can simplify the expression to get the poverty rate: Poverty rate = (1/6) * 100

Calculate the percentage

Finally, we can find the percentage by multiplying the fraction by 100: Poverty rate = 16.67% (rounded to two decimal places) In country A, the poverty rate is approximately 16.67%.

Key concepts

Economic Indicators

Economic indicators are essential metrics used to gauge the health and stability of a country's economy. They provide insights into economic trends and help predict future economic performance. A common economic indicator is the poverty rate, which helps determine the percentage of a population living in poverty. This is crucial for understanding economic well-being. It also aids policymakers in forming strategies to combat poverty.
Examining economic indicators like the poverty rate can show the economic challenges within a country. A high poverty rate may indicate issues like unemployment or lack of access to essential services, while a lower rate might suggest a more prosperous population. In Country A's context, having a poverty rate of around 16.67% offers a snapshot of how many individuals struggle financially. This, in turn, can help focus efforts on economic improvement and social welfare programs.

Population Demographics

Population demographics play a vital role in understanding a country's makeup and social dynamics. They include various statistical data like population size, age distribution, and income levels. Analyzing demographics provides essential context to economic indicators.
For instance, in Country A, the total population is 300 million. Out of this, 50 million people live below the poverty line. This information reveals the percentage of the population facing economic hardship. Recognizing the demographic segments most affected by poverty can guide the creation of targeted interventions.
Understanding demographics requires looking beyond mere numbers to see how certain groups impact and are impacted by economic conditions. Age, gender, and geographical location can all influence poverty rates. Therefore, population demographics offer a layered understanding of poverty's scale and reach.

Mathematical Calculations

Mathematical calculations are instrumental in converting raw data into meaningful economic insights. To calculate the poverty rate, one must engage in basic mathematical operations. Let's break down the calculation for Country A:
Given:

• Total population (T): 300 million
• Population below the poverty line (P): 50 million

Poverty rate is calculated using the formula:\[\text{Poverty rate} = \left( \frac{P}{T} \right) \times 100\]Plugging in the values for Country A:\[\text{Poverty rate} = \left( \frac{50}{300} \right) \times 100\]This simplifies to:\[\frac{1}{6} \times 100 = 16.67\%\]This calculation reveals the percentage of the population living below the poverty line. Understanding the calculation process is essential for interpreting data accurately. It also highlights the importance of mathematical skills in economic analysis and policy-making.