ECS3707 Assignment
3 (COMPLETE
ANSWERS) Semester 2
2024 (895997) - DUE 17
September 2024 ;
100% TRUSTED
Complete, trusted
solutions and
explanations.
ADMIN
[COMPANY NAME]
,ECS3707 Assignment 3 (COMPLETE ANSWERS) Semester
2 2024 (895997) - DUE 17 September 2024 ; 100%
TRUSTED Complete, trusted solutions and explanations.
QUESTION 1 [40 MARKS] 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? (15) 1.2 Evaluate the strengths and
limitations of GDP per capita as a measure of development
based on Amartya Sen's capability framework. How well does it
reflect people's substantive freedoms and capabilities? (15) 1.3
Analyse how the HDI and MPI incorporate the capability
approach compared to GDP per capita. Do they provide a more
comprehensive picture of development? Explain why or why
not. (10)
1.1 Comparison of GDP per Capita, HDI, and MPI
Gross Domestic Product (GDP) per Capita
• Components:
o GDP: Measures the total value of goods and services
produced within a country’s borders in a given year.
o Per Capita: GDP divided by the population of the
country.
• Methodology:
, o Calculation: GDP is calculated by summing up all
economic activities in a country (consumption,
investment, government spending, and net exports).
GDP per capita is derived by dividing GDP by the
total population.
• Aspects of Development Captured:
o Economic Output: Provides a measure of the average
economic output per person.
o Standard of Living: Assumes that higher GDP per
capita correlates with better living standards.
Human Development Index (HDI)
• Components:
o Health: Life expectancy at birth.
o Education: Mean years of schooling for adults aged
25 and older and expected years of schooling for
children entering the education system.
o Standard of Living: Gross National Income (GNI)
per capita adjusted for purchasing power parity (PPP).
• Methodology:
o Calculation: Each component is normalized to a value
between 0 and 1, and the HDI is the geometric mean
of these three normalized scores.
• Aspects of Development Captured:
o Human Well-being: Focuses on health, education,
and income, reflecting a broader view of human
development beyond just economic factors.
Multidimensional Poverty Index (MPI)
• Components:
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