Question

There are 2.4 billion people in “severe” poverty with less than $2 of income per day. (a) What is the maximum combined income of this “severely” poor population? (b) What percentage of the world’s total income (roughly $75 trillion) does this represent?

Answer 1

If income per day is less than $2, then we can take $2 as the maximum value.


(a) total combined income will be: 2.4 billion x $2 = $4.8 billion
 
(b) Percentage of world's total income will be: 4.8 billion/75 trillion x 100


4.8 x 10^7/ 75 x10^13 = 0.064 x 10 ^ -6


6.4 x 10 ^ -4 x 100