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Question 1

Computing HDI formula :

Answer 1

= (actual-min)/(max-min)

Question 2

HDI

Answer 2

Human Development Index

• It is a summary of average development (long and healthy life)

Question 3

HDI scores (country grouping)

Answer 3

• low human development (0.800 and above)
• Medium human development (0.700-0.799)
• High human development (0.550-0.699)
• Very human development (below 0.550)

Question 4

IMF classification of countries :

Answer 4

• Advanced economies
• Emerging and developing economies
• wide used classification least developed country

Question 5

Dimensions of development:

Answer 5

• Real income per capita adjusted for purchasing power
• Health: measured by life expectancy, undernourishment, and child mortality
• Educational attainments : measured by literacy and schooling

Question 6

Real income per capita

Answer 6

• GNI per capita in PPP

- PPP : defined as the number of local currency units required to purchase the identical quantity of goods services

Question 7

Characteristic of the developing world:

Answer 7

1. Lower levels of living and productivity

• Gap between countries
• Income levels related to productivity differential
• Poverty Trap

2. Lower levels of human capital (health,education,skills)
3. Higher levels of inequality and absolute poverty
4. higher population growth rates
5. Greater Social Fractionalization
6. Large Rural population with Rapid rural-to-urban migration

Question 8

Differences in Initial Conditions (low income and high income countries)

Answer 8

• Psysical and human resources endowments
• Per capita incomes and levels of GDP in relation to the rest of the world
• Climate
• Population zise, distribution and growth
• Historic role of international migration
• international trade benefits
• basic scientific/technological research and development capabilities
• Institutions

Question 9

conditions to converge of economies (develop and emerging)

Answer 9

Technological transfer

• Rapid capital accumulation : Diminishing Returns to capital in develop countries. lower DRC in emerging countries.

Question 10

Unconditional convergence

Answer 10

unconditional is hard to find

• income gap is widening
• but there is evidence of convergence among developed countries

Question 11

Indicators of Health and education

Answer 11

• life expectancy
• Undernourishment
• literacy

Question 12

Characteristic of developing countries

Answer 12

• Lower levels of living and lower productivity
• Lower levels of human capital
• income inequality
• High population growth