Econ 116- HW1

Econ 116 HW1 - 1 The reason why services are cheaper in poor countries is because typically the services available must be made affordable to

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Unformatted text preview: 1. The reason why services are cheaper in poor countries is because typically, the services available must be made affordable to domestic consumers. In poor countries, the ability of the poorer domestic population provides a lower purchasing power index, forcing the market to drive down prices of their domestic population. The poorer you are the greater the value of marginal utility of services and goods. Therefore, since the value of services have such a high marginal utility to poor countries, 2. Calculating Life Expectancy Rate: (71-25)/(85-25) = 0.766 Calculate Education Index: Adult Literacy: 86/100= 0.86 Gross Enrollment: 64/100= 0.64 Education Index: 2/3 (lit ratio) + 1/3 (gross enrollment) = 0.7866 GDP Index= 0.62 HDI= 1/3 (life expectancy index) + 1/3 (education index) + 1/3 (GDP Index) = 0.724 3. f 4. v All this meant a further increase in the total hours worked by family labour. The commeration of agriculture too was accompanied by an increasing labour intensity....
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This note was uploaded on 04/18/2008 for the course ECON 116 taught by Professor Hoshi during the Winter '08 term at UCSD.

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Econ 116 HW1 - 1 The reason why services are cheaper in poor countries is because typically the services available must be made affordable to

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