State whether statement is TRUE/ FALSE and briefly Justify reason for it 1. Two countries with...

Question:

State whether statement is TRUE/ FALSE and briefly Justify reason for it 1. Two countries with the same Gini coefficient have the same Lorenz curve.

2. Limited access to insurance is often a constraint faced by smallholder farmers that hinders agricultural productivity.

3. When applied to real-world data, the Solow model does pretty well in explaining how amounts of capital and labor can impact aggregate production.

4. The Total Poverty Gap is the total income needed to eliminate poverty, normalized by the total income in society.

5. Moral hazard is important in credit markets, but not in insurance markets.

6. By increasing the interest rate, it is possible that a lender facing adverse selection may reduce her own expected profit.

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