Problem Set 4

Problem Set 4 - Due September 8th, 2010 1. Ch. 13 ‐...

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Unformatted text preview: Due September 8th, 2010 1. Ch. 13 ‐ Income Inequity a. Explain the intuition behind the Kuznets curve (both increases and then decreases in income inequality as a country develops.) b. Calculate the Gini Coefficient for the economy represented by the Lorenz curve in the graph below. Problem Set 4 2. Ch. 15 – Geography Climate and Natural Resources a. What is the link between climate and output? b. Explain two factors that might be driving this relationship. c. What is the Natural Resource Curse? d. Explain two factors that may result in the Natural Resource Curse. 3. Ch 12 ‐ Governance a. Explain why low income countries may be more susceptible to poor governance. b. What role does the rule of law play in promoting growth? c. In what ways can democracy promote growth? d. In what ways can democracy hinder growth? 4. Global Warming a. The Earth’s Temperature is a global public good. Explain why this makes it difficult to sustain the socially optimal climate. b. How do the potential consequences of global warming for the developing world differ from the potential consequences for industrialized nations? c. What are the arguments for allowing developing nations to increase their carbon emissions, despite concerns about global warming? ...
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This note was uploaded on 12/05/2010 for the course ECON 114 taught by Professor Cindybenelli during the Summer '08 term at UCSB.

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