Description
Prepare an executive summary answering the following questions/problems. The main
purpose is to quantify the living conditions of developing countries and to examine what
the theories can contribute to understanding the problems of underdevelopment.
The format should be 8×11 page with one-inch margin. Use Times Roman 12, 1 ½ spaced
and make your summary between 800 – 900 words in length. Use a cover page with your
name title of the assignment and date. Assignments longer than indicated will face a
penalty and the likelihood that I will NOT read beyond the limit. If your work is “too
long”, summarize, synthetize, tighten your arguments. This is a useful skill.
- Calculate the human development index (HDI) for Gabon given the following data and
explain its meaning:
Population is 2 million people
Life expectancy 66 years
Expected years of schooling was 13 years
Mean years of schooling (years) was 6
Gross National income per capita was $9,500
See the UNDP Technical Notes (in the Content section), for an example of HDI
calculations. - Suppose you have a country Z (population = 2,000) with 2-goods.
2007 2008
Qty Price Qty Price
Computers 500 1,000 600 1,200
Vacation package 1,500 2,000 1,800 . 2,400
i. What is the GNP for 2007 in nominal terms? For 2008?
ii. What is the real GNP for 2007?
iii. What is the real growth rate of this economy?
iv. If the US price of computers in 2008 is 800 and the vacation package price is $4,000,
what is the PPP GDP per capita of country Z in 2008?
v. Can you say unequivocally that the standard of living has increased for country Z
between these two years?
- Why does economic growth may not necessarily lead to an improvement in the
standard of living? Think of a couple of good reasons.
Sample Solution
