Response Sheet for Week 2
Due July 13th, 2018 (5 p.m.)
IMPORTANT READ CAREFULLY: The goal of this sheet is to help you organize your readings each week.
The sheet lists the readings for each chapter in logical order. Please follow the order of readings so that
you can understand the different concepts. Questions listed help you extract important information
from each reading. The questions are general but target a specific concept within each reading. Those
concepts are most important from the readings, and you will be mostly tested on these concepts on the
midterms. The sheet is not meant to be graded carefully. It is merely a guide to help you organize your
thoughts and help you study for the midterms (some sort of outline). As you can see, most questions
require long answers. Detailed long answers to each question will help you do well on the midterm. For
grading purposes, a paragraph for each answer is sufficient. You are not likely to do well on midterms;
however, if you don’t know the full answer for each question listed here. There will NOT be an “answer
key” for these questions because they are not meant to quiz you. The questions make sure that you do
all the readings entirely but with emphasis on the mentioned concepts. The midterm questions will not
go into nitty-gritty details but rather general concepts and information emphasized in the many
Summary of Week: textbook readings and external readings for week two are meant to define and discuss
important characteristics of development. Namely, you will read about topics such as inequality, extreme
poverty, health, education and rapid population growth. Each one of these are important determinants
of what is a developed system. All of these are also good topics for your final project (will be discussed in
-detail towards the end of the course). Answering questions for each required reading listed below will
help you understand important concepts that you will be tested on for the midterms.
Textbook Reading (Todaro and Smith): Beginning of Section 5 (pages 216 to 224). Ignore functional
distributions: This reading is very important to introduce the concept of inequality and how it is
measured. The concept of a GINI coefficient is important.
What is a personal distribution of income?
What are quintiles? Deciles? Can you understand Table 5.1? You should be able to calculate
quintiles or quartiles on a midterm for instance.
What is a Kuznet ratio? You don’t need to calculate it but know what it is, and the general
What is a Lorenz Curve? I will have you calculate it shortly. For now, don’t worry about
calculation but understand the concept very well on pages 220 and 221.
What is the GINI coefficient? The Concept
How to calculate the Gini Coefficient. What is the formula? Look at Figure 5.3
Look at figure 5.4. What is the point of the different curves? What curve demonstrates a
more equal economy? Which one does not? Is there a debate?
What four properties that the Gini coefficient satisfies? Explain each in-detail.
External Reading: What is the GINI Coefficient and how to calculate it? This source will give you more
information on what is the GINI coefficient and how to calculate it. Watch until 31:13 only.
Calculate the GINI Coefficient (Find Guide under Resources in Week 2): This word document will show
you step-by-step how to calculate the GINI coefficient given a set of data. Do this after you watch the
video because the guide complements it and may be confusing without it. For Homework redo the
example in the guide and continue it by calculating the GINI coefficient. Submit the homework under
Homework 4 in Week 2 on MyCourses. You can leave this empty here since this is a homework
Textbook Reading (Todaro and Smith): Section 5.3 (pages 230 to 232). Why is inequality bad in an
What are the three main reasons of why inequality is bad? I won’t have you work with an
equation like on page 232, but you should understand what it means.
Textbook Reading (Todaro and Smith): Section 5.2 (pages 226 to 230): What is absolute poverty and
how to measure it. Applying the Formulas is very important here.
What is absolute poverty? How is it different than just poverty?
What is a headcount Index? Why is it not sufficient and we need other measures?
Comment on figure 5.6
What is the total poverty gap (TGP) measure as a concept? How do we see its advantages
from figure 5.6.
Important: You are expected to be able to calculate the TGP. You should be able to apply
this formula to an application! The big sigma is called a “summation sign”. This link will help
you understand the summation: http://www.columbia.edu/itc/sipa/math/summation.html
What is the AGP? Calculate it.
What is the Foster-Greer Thorbecke Index? Why is it kind of a generalization of the TGP?
What is its advantages over the TGP?
Equation (5.3) is extremely important. Make sure you can solve the application of P2 on
page 229. Don’t worry about equation (5.4).
Again, now that you have been able to solve the numerical example on page 229. Can you
easily solve a problem using equation (5.1)? Try it out!
What is the P2 measure? Why is it useful?
What is the P1 measure?
Why do development agencies still use the P0 measure?
Briefly describe the Multidimensional Poverty Measurement.
Textbook Reading (Todaro and Smith): Section 5.4 (pages 240 to 256): What is the magnitude and
extent of absolute poverty.
How many people in the World live under the poverty line? What percentage of the world’s
population? Is that a lot?
Comment on Figure 5.13. Which world continent has had the most progress in reducing
Is absolute poverty similar in magnitude in different continents?
What is Table 5.5? What measure is it using? Choose one country and talk about it using the
What is the MPI? Don’t worry about calculating it.
What is Chronic Poverty? Summarize the paragraph
What is the relationship between economic growth and poverty? Summarize briefly
Summarize the following concepts (a paraph is sufficient):
o Rural Poverty
o Women and Poverty
Education and Health
Textbook Reading (Todaro and Smith): Selected readings from Chapter 8: Education and Health are
important determinants of development. In this section, you will read selected pages from the chapter
that will provide you with a general idea of key information with regards to Education and Health.
Read section 8.1 (Pages 382 – 388):
Why to study Health and Education? Relate to the general idea of development
Why is education and health are closely related?
Why increasing income alone is not enough to boost education and health?
Read section 8.3 (Pages 391 – 396):
What is Child Labor?
According to the International Labor Organization (ILO), what is the state of child labor at
the time of writing the chapter?
What is figure 8.3? Use the description in the book to help you understand the general idea.
I will not have you re-create the graph, but understand what is happening.
What are conditional-cash transfers?
After reading, is child labor an issue? Is it good or bad for development? Why? What are
strategies to get more children enrolled in schools. Summarize in a paragraph or two.
Read section 8.4 (pages 396 – 400):
What is the educational gender gap?
Check figure 8.4, is it an issue in all developing nations?
Why is it important to close the educational gap? Three reasons. Explain.
Is there discrimination against women in healthcare? List all such instances and briefly
What are consequences of gender bias in health and education? Summarize pages 399 –
Distribution of Education (pages 404 – 406):
Examine Figure 8.7? Explain the graph
The book compares South Korea to India. What is the objective of this comparison?
What is a more-equal distribution of education? Is that good or bad to improving the
educational system and therefore development?
Comment on school quality in some developing nations?
Summarize: according to these few pages, what are problems in educational systems in
developing countries and how can they be improved? One small paragraph is sufficient.
Section 8.6 (pages 406 – 419): Please read all those pages listed. Do NOT read any of the Boxes within
the assigned reading. Ignore those completely.
After having read the section, please list all wide-spread diseases and health issues that
appear in many developing countries and how some can be countered. Write one small
paragraph for each disease. In a way, you are summarizing the 13 or so pages you just read.
High Population Growth
Textbook Reading (Todaro and Smith): Section 6.1 (Pages 284 to 293): This section introduces
population growth, and its relationship with economic development.
What is the population growth at the time that the chapter was written? What is it now? Is
the population of the World growing rapidly?
In historical context, how is development now different than what it was in the past?
Geographically speaking, where is most of the world’s population? Be detailed here using
Summarize the section about fertility and mortality trends. How do developing nations
differ than those who are developed?
Are people more youthful in developing nations?
What is the youth dependency ratio? Is it higher in developing nations. Talk about this.
What are the two reasons for the momentum of population growth? Discuss those in some
Textbook Reading (Todaro and Smith): Section 6.5 (Pages 307 to 315): This section talks about high
fertility and whether it is a real problem or not for economic growth.
What are the three arguments of why population growth is not a real problem? In one
paragraph for each reason, describe what are the reasons why it is not viewed as a real
What is the “extremist argument” on population growth?
What is the population-poverty cycle? Is it adopted by most economists today?
The simple model on page 312 is meant to capture the effect of population growth on
economic growth. Don’t go in-detail when it comes to the math, but understand the general
idea by reading carefully.
Briefly talk about all 7 other reasons of why population growth is seen as a real problem.
Briefly summarize the consensus between the two schools of thoughts regarding population
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