PUBP3600-final-with-solutions.pdf - PUBP3600 2016 Final...

PUBP3600 2016 Final Exam SOLUTIONS
PUBP3600 – Final Exam
Dr. Emanuele Massetti
December 15, 2016
DO NOT TURN THIS PAGE IF NOT INSTRUCTED TO DO SO.
Instructions
Note: Question 15 was not precise and was dropped before the test started. The total number of points
without question 15 is 73.
The exam consists of 39 questions for a total of 73 points. Question 40 gives 5 bonus points. This means
that if you that a perfect score is equivalent to 80/75=106.67%. Which translates into 42.67 points.
It is strictly forbidden to use notes, material distributed during class, internet sources, and telephones.
The simple calculations required in the exam do not need the help of a calculator. You can use scrap paper
to sketch your answers but scrap paper will not be collected. The exam is strictly individual. Please follow
the standard rules of Georgia Tech Honor Code.
In case of multiple choice questions, please circle the correct answer. In case of open ended questions
please provide a succinct answer. You may also use bullet points. Please write clearly in the allotted space.
Please write below and on each page your last name. Answer sheets without name will not be corrected.
You have time to work at the exam until 5:35 PM. A notice will be given 5 and 2 minutes before the time
ends. When asked to do so, please immediately close the exam papers.
Name:
Last name:
1

PUBP3600 2016 Final Exam SOLUTIONS
1. [1] "Sustainable development is development that meets the needs of the present without
compromising the ability of future generations to meet their own needs". Is this a normative or
positive statement?
2. [1] In a small economy with large natural resources managed by foreign companies:
3. [2] Please succinctly describe how the authors of the Human Development Index aggregate different
indexes into a single indicator, and why they do so.
4. [2] The table below describes the income distribution of two countries. Population has been divided
in groups of equal size. Each group is randomly denoted with a letter. Please draw the Lorenz curve
for both countries in the box below. Please label the axis.