urbanization
1-Mention at least three limitations of GDP when it is considered as a measure of economic performance or as a measure of human welfare
-Leisure
-Home production
-Environmental changes
2-what are the drawback of price indexes when they are used for discounting to access the growth in living standard
-Quality changes
-New product
-Substitution
3-what are the main part of wealth according to the world bank wealth of nation projects
-Produced capital
-National Capital
-Intangible capital
-Social welfare
-Education level
4- In class we talked about William Nordhaus’s estimation of the change in the price of light. Which drawback of price indexes does this example illustrate and why? Why is it important when assessing economic development?
- The bottom line of the William nordhaus estimation of the change in the price of light hinges on the fact that traditional price indexes of the lighting vastly overstates the increase in lighting prices the last two centuries and the true rise in living standard in this sector has consequently been vastly understated.
5- What is the magnitude of difference between the per capita income of the average low income country and the per capita income of the average high income country today? Has this difference always been this large? If not, when did the gap begin to grow?
- When comparing country income levels there are several differences that can be found between each group, listed in order of examination they are GNP per capita, political stability, life expectancy, and access to education, technological level
6- What are the measures that are avaraged to arrive at the Human Development Index? Why are these considered to be important?
- The first Human Development Report introduced a new way of measuring development by combining indicators of life expectancy, educational attainment and income into a composite human development index, the HDI. The breakthrough for the HDI was the creation of a single
-Leisure
-Home production
-Environmental changes
2-what are the drawback of price indexes when they are used for discounting to access the growth in living standard
-Quality changes
-New product
-Substitution
3-what are the main part of wealth according to the world bank wealth of nation projects
-Produced capital
-National Capital
-Intangible capital
-Social welfare
-Education level
4- In class we talked about William Nordhaus’s estimation of the change in the price of light. Which drawback of price indexes does this example illustrate and why? Why is it important when assessing economic development?
- The bottom line of the William nordhaus estimation of the change in the price of light hinges on the fact that traditional price indexes of the lighting vastly overstates the increase in lighting prices the last two centuries and the true rise in living standard in this sector has consequently been vastly understated.
5- What is the magnitude of difference between the per capita income of the average low income country and the per capita income of the average high income country today? Has this difference always been this large? If not, when did the gap begin to grow?
- When comparing country income levels there are several differences that can be found between each group, listed in order of examination they are GNP per capita, political stability, life expectancy, and access to education, technological level
6- What are the measures that are avaraged to arrive at the Human Development Index? Why are these considered to be important?
- The first Human Development Report introduced a new way of measuring development by combining indicators of life expectancy, educational attainment and income into a composite human development index, the HDI. The breakthrough for the HDI was the creation of a single