Question

1- Why can’t Gross National Income be directly used as a

          measure of income level? What does the PPP adjustment

          take into account? Why has it to be per capita?

Q_12: Based on the findings above, what conclusions can be drawn about income and health inequality between countries in the world? What is the general relationship between income and health status? Why do you think there is such a relationship? What does the existence of the outliers tell us regarding the impact of income on health? Does higher national income always lead to better health of the citizens? Overall, what can be learned from this study regarding how to maintain or improve people’s health?

Answer 1

soln:.

Gross National Income cannot be directly used as a measure of income level as GDP is merely the value of goods and services produced in the country in a period of one year. how ever when we consider the foriegn purchases, the price level differences in the goods that are to be puchase need to be nulify as it was just due to the difference in the values of currencies of the nations traded

To nulify this effect the adjustment through PPP(Purchase price pariety) should be made.LIke.:

Where:

S represents exchange rate of currency 1 to currency 2

P₁ represents the cost of good x in currency 1

P₂ represents the cost of good x in curency 2

and then the concept of per capita income came into the picture as while calculating national income one must consider the level of population, for which average income per person in the country must be caculated through which one can understand the exact growth in the national income per person had averagely as compare to previous year.

Relationship between income and health inequality:

does income relates to the health of the people?, this questions is very difficult to answer as there are many studies takes place and the conclusions are very debatable. but the fact is this income level of the nation is not the sole factor by which the good health conditions of the citizen can be ensured,

generally speaking, Overall there seems to be little support for the idea that income inequality is a major, generalizable determinant of population health differences within or between rich countries. Income inequality may, however, directly influence some health outcomes, such as homicide in some contexts. The strongest evidence ... is among states in the United States, but even that is somewhat mixed.

the outliers expain that the effect of income has to interprete in dual ways first is absolute effect,and second is relative effect. conclusively it can be said that income and health inequality between countries are just beause of equality in the distribution of national income and also their accesiblity to the health facilities in the nation.

A number of studies started to suggest that the link between income inequality and mortality is sensitive to the time periods examined, the specific causes of mortality examined, and the inclusion of controls for other population characteristics.

so to improve public health nation's policies must ensure equitable distribution of resources and must work to shorten the gap betwen the rich and the poor.