What are the three main indicators that make up the Human Development Index?
Answer:
Distinguish between economic growth by modern sector enlargement, modern sector
enrichment and traditional sector enrichment. For each of the three cases, show what
happens to absolute poverty and to relative inequality, using a precise measure of each.
Answer:
How does the Washington Consensus differ from the Santiago Consensus?
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How can the O-ring theory help explain the existence of a low-level equilibrium that an
economy may find itself in?
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What are the characteristics of those who migrate to urban areas? What positive and
negative effects does their leaving have on those who remain?
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Consider the following distribution of income in a 12-person economy, with the modern
urban
wage = 3, the traditional rural income = 1, and the informal urban wage = 2:
(1,1,1,1,2,2,2,2,3,3,3,3). The poverty line = 1.25. Suppose rural incomes are raised to
1.5 through expanded agricultural exports. What happens to relative inequality?
Absolute poverty? Calculate the Ahluwalia-Chenery welfare index for terciles (3
fractiles) under GNP weights and equal weights. Why is the equal-weighted index
higher?
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Explain what is meant by the term coordination failure and provide an example.
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Explain the concept of the “idea gap” in development economics.
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What are some of the specific policies aimed at improving the productivity of women
farmers
in Kenya?
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What is a development bank? What are some of the reasons they have not had greater
success?
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In defining development to include more than just the growth of per capita income,
there is an implicit assumption that the growth of per capita income alone is not
sufficient to guarantee the reduction of poverty and the growth of self-esteem. Is it
possible that there could be growth of
per capita income without the achievement of these other objectives?
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Explain the difference between size and functional measures of income distribution.
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Explain why the education of girls is probably the most cost-effective development
investment. Be sure to include in your answer some discussion of at least two of the
following: absolute poverty, health and development, fertility, and agriculture.
Answer:
Explain how the devaluation of a developing country’s currency is supposed to reduce
its external debt. Give two reasons why a devaluation may be less effective than
expected.
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Why is urban giantism less prevalent in mature democracies?
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What are the terms of trade? What factors lead them to change over time?
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Describe the effect of the loss of biodiversity on productivity and health.
Answer: