ECON 361 Assignment 1Instructor: BarberQueen’s University, Department of EconomicsDue: Feb 27th, 2019NOTE: You may work in groups of up to 3, but not more than 3.(submit just one copy).Please show all of your work, failure to show your work will results in a score of 0.1.Poverty Measures:(a) Consider a distribution of income over a sample of 10 people: 5,000, 19,000, 45,000, 81,000,10,000, 35,000, 115,000, 43,000, 37,000, 28,000. Let the poverty line be 21,000. Calculatethe following (3 Marks):i. Headcount index.ii. Poverty gap index.iii. Squared poverty gap index.(b) Consider a transfer of 5,000fromthe person whose income is 19,000tothe person whoseincome is 10,000. How would each of the following indices respond? (4 marks)i. Headcount index.ii. Poverty gap index.iii. Squared poverty gap index.What, if any, poverty measurement axioms are violated in this example and by which indices?(c) Next imagine that 10 new people are added to our sample (from part (a)) who end uphaving the exact same distribution of income as the first 10. i.e. we now have two peoplewith 15,000, two with 20,000, etc.Again, re-calculate the following: (4 marks)i. Headcount index dfs.