ECS3707 Assignment 3 Semester 2 2024 | Due 17 September 2024
19 views 0 purchase
Course
Development Economics (ECS3707)
Institution
University Of South Africa (Unisa)
Book
Economic Development
ECS3707 Assignment 3 Semester 2 2024 | Due 17 September 2024. All questions answered.
Question 1
1. Critically assess the merits of using economic metrics such as Gross Domestic Product (GDP)
per capita versus broader multidimensional measures like the Human Development Index (HDI)
or Mul...
TEST BANK For Economic Development 13th Edition By Michael Todaro (All Chapters) Latest Version A+
Test Bank for Economic Development 13th Edition by Todaro & Smith, ISBN: 9781292291154, All Chapters 1 to 15 Covered, Verified Latest Edition
Test Bank for Economic Development 13th Edition by Todaro & Smith All 1-15 Chapters Covered ,Latest Edition, ISBN:9781292291154
All for this textbook (13)
Written for
University of South Africa (Unisa)
Development Economics (ECS3707)
All documents for this subject (25)
Seller
Follow
Aimark94
Reviews received
Content preview
, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
Please note that the author of this document will not responsibility for any plagiarizing you
commit.
Question 1
1. Critically assess the merits of using economic metrics such as Gross Domestic Product (GDP)
per capita versus broader multidimensional measures like the Human Development Index (HDI)
or Multidimensional Poverty Index (MPI) for understanding development progress.
1.1. Compare and contrast the key components and methodologies of GDP per capita, HDI, and
MPI. What aspects of development does each aim to capture?
Economic development has traditionally been measured using economic metrics such as Gross
Domestic Product (GDP) per capita, but in recent decades, broader, multidimensional measures like
the Human Development Index (HDI) and Multidimensional Poverty Index (MPI) have gained
prominence. These newer indices attempt to capture a wider array of factors influencing human
well-being, as GDP per capita alone has been increasingly criticized for its limitations in reflecting
overall quality of life, distribution of wealth, or social welfare. This essay critically assesses the
merits of using GDP per capita in comparison to HDI and MPI for understanding development
progress by first comparing and contrasting their components and methodologies, and then
examining the aspects of development that each aims to capture.
GDP Per Capita
GDP per capita is the most widely used economic metric for measuring development. It is calculated
by dividing a country’s total Gross Domestic Product—the monetary value of all goods and services
produced within its borders—by its population. This gives an average income per person and is often
interpreted as an indicator of the standard of living in a country.
Key Components and Methodology
GDP per capita is an aggregate measure that reflects the size of an economy relative to its population.
Its calculation involves:
Total GDP: The sum of all economic activities within a country, including consumption,
investment, government spending, and net exports.
Population: The total number of people in the country.
The merit of GDP per capita lies in its simplicity and comprehensiveness in capturing economic
activity. It provides a clear indication of a country's economic size and growth potential, helping to
track whether a nation’s economy is expanding or contracting over time. However, its limitations are
equally notable. GDP per capita does not account for income distribution, regional disparities, or
non-economic aspects of development such as education, health, or quality of life. It also fails to
capture environmental degradation or the sustainability of growth, thus offering only a narrow view
of development focused primarily on wealth creation.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Aimark94. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.85. You're not tied to anything after your purchase.
