,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)
QUESTION 1 [40 MARKS]
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)
GDP per capita:
• Key Components: GDP per capita is the total market value
of all goods and services produced in a country, divided by
, its population. It is a measure of economic output per
person.
• Methodology: GDP per capita is calculated by dividing a
country’s gross domestic product (GDP) by its total
population.
• Aspects of Development Captured: It primarily reflects
economic wealth and material standard of living.
However, it does not account for income inequality, quality
of life, or non-economic aspects like health, education, and
environmental sustainability.
Human Development Index (HDI):
• Key Components: HDI includes three dimensions: life
expectancy (health), education (mean years of schooling
and expected years of schooling), and standard of living
(gross national income per capita).
• Methodology: HDI combines normalized scores for life
expectancy, education, and income to provide a composite
index. It is a more comprehensive metric that reflects
human development beyond mere economic output.
• Aspects of Development Captured: HDI aims to capture
health, education, and income, providing a broader
picture of well-being and human capabilities than GDP per
capita alone.
Multidimensional Poverty Index (MPI):
• Key Components: MPI measures poverty across multiple
dimensions, including education (years of schooling,
school attendance), health (child mortality, nutrition), and
