Homework 1 ECON 114 RESPOND TO THE FOLLOWING SHORT-ANSWER QUESTIONS PLEASE TYPE YOUR ANSWERS Chapter 1 1) In defining development to include more than just the growth of per capita income, there is an implicit assumption that the growth of per capita income alone is not sufficient to guarantee the reduction of poverty and the growth of self-esteem. Is it possible that there could be growth of per capita income without the achievement of these other objectives? 2) In reviewing discussions of life in developing countries, what is it about lifestyles in the lowincome countries compared with lifestyles in the high-income countries that most strikes you? Why? 3) Do you think it is in the material interests of high-income countries to help low-income countries improve their economic performance? Why or why not? Chapter 2 1) What are some of the main ways in which the economies of developing countries differ from one another? 2) What are the three major components of economic growth? Chapter 3 1) Why is the debate between the international dependence and the neoclassical counterrevolution schools referred to as “finger pointing?” 2) Apply what you have learned about development and development theories to speculate on the following thought experiment: What if anything might be different about today’s international economic order if the Spanish had colonized North America and the English had colonized South America? Chapter 5 1) The following income distribution data are for Brazil. Quintile Lowest 20% Second quintile Third quintile Fourth quintile Highest 20% Highest 10% a. Percent Share 2.4% 5.7% 10.7% 18.6% 62.6% 46.2% Carefully graph the Lorenz curve, labeling the axes. b. Explain how to find the Gini coefficient, graphically. c. Brazil’s national income is about $300 billion. What is the approximate dollar income of the bottom 20 percent? Bottom 40 percent? d. Brazil’s population is approximately 150 million. Suppose that each household makes the average income for its quintile. What is the level of poverty if the poverty line is $400 per capita? e. Suppose one percent of national income were transferred from the richest 20 percent of households to the poorest 20 percent of households. Show the effect on relative inequality. f. Under the same transfer, what is the effect on poverty? Chapter 6 1) Is there evidence that an increase in per capita income stimulates population growth? 2) What is meant by the demographic transition? What are the differences in the demographic transition between the current developed economies and developing countries? Chapter 7 1) What are the characteristics of those who migrate to urban areas? What positive and negative effects does their leaving have on those who remain? 2) Point out the main differences in job conditions and worker characteristics between the urban formal and informal sectors. Chapter 8 1) What is human capital and why is it crucial to expand human capital as part of the development process? 2) Explain some of the reasons why developing countries have not realized a greater positive development impact from their higher education programs. 
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