Question

In: Economics

Q1. The Human Development Index ( HDI) ... Group of answer choices -All options are correct...

Q1. The Human Development Index ( HDI) ...

Group of answer choices

-All options are correct

-is a summary measure of life expectancy, education, and per capita income indicators.

-was created to emphasize that GDP per capita is a good proxy for wellbeing.

-is a summary measure of income and inequality.

Q2. Using the relative poverty line we can compare the evolution of poverty across countries over time.

Group of answer choices

True

False

Q3. Country X has a population of 22 million. The last estimates available indicate that 4 million people spend less than $ 1.9 (US dollars) per day and 9 million spend less than $ 5 (US dollars) per day.

What is the Poverty Headcount Ratio of country X? This is a number from 0 to 1 and you should use two decimal points.

Q4.

Low-income countries tend to have lower fertility rates than high-income countries because the cost of raising a child is higher in low-income countries.

Group of answer choices

True

False

Q5

When looking at the evolution of GDP per capita across countries over time we notice some interesting patterns. What is true in terms of global development after WWII?

Group of answer choices

-There is a divergence of income among all countries

-Convergence of income among high-income countries

-Convergence of income among all countries

-Convergence of income among low and middle-income countries

Q6.

Health product subsidies (such as subsidized bed nets) are a type of household intervention.

Group of answer choices

True

False

Please help.

Solutions

Expert Solution

Q1
(A) All options are correct
Reason - HDI comprises of life expectancy, education and GDP/capita income which is the generally accepted measure of standards of living. While it measures income, the inequaliy adjusted HDI (IHDI) uses the coefficient of human inequality too.

Q2
(A) True
Reason - Relative poverty line depicts the condition when a normal household lacks the minimum amount of income needed to maintain the average standards of living. Hence, the graph would give us the long term situation of poverty in a country.

Q3
Assuming poverty line at people who spend less than $1.9 per day
Head Count Ratio = (Number of people below poverty line ) / (Total population ) = 4/22 = 0.18

Q4
(B) False
Reason - Fertility rates are generally higher in low-income countries than high-income ones.
Factors that support this fact are - Urban norms in high-income countries, Higher opportunity costs in high-income countires , lack of female education & lack of knwoledge about birth control in low-income countries,et al.


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