Question

1. Assume there is no migration in or out of the country. Is this True or False and explain your answer:

a. Two countries that have the same birth rate and same death rate will have the same population growth rate.

b. Two countries that have the same mortality rates and same fertility rates will have the same population growth rate

2. “If two countries have the same fertility rate, mortality rate and net migration rate, they will experience the same population growth rate.” Is this statement True, False or Uncertain? Explain your answer.

3. What is "demographic transition" and what are its key determinants?

4. Define the following variables:

a. birth rate vs. fertility rate

b. death rate vs. mortality rate

5. What is population growth rate equal to?

6. Take two countries, A and B, each has 100 mil population and in both countries 50% population is poor. Assume the poverty line is $1 per day. Below are two distributions of income in these countries. For each country, calculate the PG and APG. In which country poverty is more severe?

Income:	Between 0 and 25 cents	Between 25 cents and 50 cents	Between 50 and 75 cents	Between 75 cents and 1$
Country A, mil of people	5	5	20	20
Country B, mil of people	10	10	15	15

7. What is the main difference in prediction between the Lewis model and the Harris-Todaro model on rural to urban migration?

8. Draw the Lorenz curve and calculate the Gini coefficient for two countries based on the following decile income share data, where the poorest decile is on the left and the richest is on the right. What can you infer from the comparision of the Gini coefficents between these two countries?

Country A: 30 20 15 10 5   5   5 5   3 2

Country B: 20 15 10 10 10 10 10 10 4 1

9. Give 3 theories for why income equality can be bad for economic growth. Provide your own view on this question.

Answer 1

1) a). This statement is false. Because though birth rate and death rate is same these countries may have difference between migration rate. If one country is attracting migrants for the various reasons like employment, security etc. the growth rate will be different from the other one. Hence this statement is false.

   b) This statement is also false. Because though mortality rate and fertility rate is equal there may be difference in migration rate. The size of the population also matters in this case. There are so many factors influencing the distribution of population. Urbanization, minerals are economic factors. Hence the this statement is also false.

2. This statement is not a true or false. It is uncertain. Each country has its own specifications. There are so many factors influencing the distribution of population. Urbanization, minerals are economic factors. So this statement is uncertain.

3.Demographic Transition - Demographic Transition theory can be used to describe and predict the future population of any area. Population of any region changes from high births and high deaths to low births as society progresses from rural agrarian to urban industrial.

In the present day different countries are at differant stages of demographic transition.

Key determinants - High fertility and high mortality. Improvements in sanitation and health conditions - lead to decline in mortality.

4. a) Birth rate - It is a parameter of the entire population .Fertility rate is a parameter of a group of individuals in the population. Fertility rate applies for females in the reproductive age , but there is no such restriction for the birth rate.

b) Death rate - It is expressed in terms of number of deaths in a particular year per thousand of population in particular region. Mortality rate is typically expressed in units of deaths per thousand individuals per year.