Chapter 1

Question 1

In developing countries

Answer 1

-821 million people don’t have enough food
- 844 million don’t have access to water
-2.3 billion don’t have access to sanitation

Question 2

Life Expectancy at Birth

Answer 2

• 79 years among 1.3 billion ppl in more developed countries
• 65 years for1 billion I. Least developed countries

Question 3

Going back in history

Answer 3

• fraction of population with income of less than one dollar per day fell by more than 2/3 between 1990 and 2015
• in China the number of people with income less than 1dollar per day fell by 742 million in this period

Question 4

3 approaches to measuring GDP

Answer 4

-product approach (total market value of all final goods and services )
- expenditure approach: Y = C + I + G + NX
-income approach: total income of population of an economy during a year

Question 5

GDP per capita

Answer 5

Reflects average individual income in economy in a year

Question 6

GDP p.c. 1870-2016

Answer 6

GDP pc in 2016 is 14.2x as large as in 1870

Question 7

Japan

Answer 7

• in 1870 Japan income wasn’t quite 1/3 US income
• by 1990 Japanese income per capita was 80% of US Level
• 2 changes in trend growth: quickened at end of WWII and slowed in 1973

Question 8

Growth miracles

Answer 8

In 1960 SK and Philippines had similar levels of income per capita but over next 5 decades the growth rates differed dramatically
- SKavg growth rate 6.2% per yea, Philippines 2.6% per year
-SK almost 5x as rich as Philippines

Question 11

Growth pre 1820

Answer 11

Paul bairoch estimates that differences in standards of living b/w richest and poorest parts were a factor of 1.5 or 2

Question 12

China over long run

Answer 12

• Europe living standard surpassed China around 1750

Question 13

Income Inequality between countries

Answer 13

• in 1820 within country inequality accounted for 87% of world
• today between country inequality is most important source of inequality