The level and growth rate of real GDP per capita

 

 

1. Comment on the following statement: (5)
The level and growth rate of real GDP per capita can be a misleading indicator of development.
At the same time, countries that experience sustained increases in real GDP per capita over time
will tend to be more developed. Give an example and include the source of information.
2. The 2006 Human Development Report reported that the HDI of South Africa was 0.653 (and
its rank was
121) and that of the Peru was 0.767 (and its rank was 82). South Africa’s per capita income (in
PPP dollars)
was 11,192 and that of Peru was 5,678. Comment and explain. (5)

3. The following income distribution data are for Brazil.
(a) Carefully graph the Lorenz curve, labeling the axes. (3)
(b) Explain how to find the Gini coefficient, graphically. (3)
(c) Brazil’s national income is about $300 billion. What is the approximate dollar income of the
bottom 20%? Bottom 40%? (4)

Sample Solution

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