BUS061 HW2

BUS061 HW2 - Answer: The Human Development Index is a...

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Sharon Ng Professor Diamond BUS061 10 July 2011 Chapter 2 Homework 1. What is meant by the Gini Index and how is it computed? Answer: The Gini Index is a standard economic measure of income inequality, based on Lorenz Curve. A society that scores 0.0 on the Gini scale has perfect equality in income distribution. The higher the number over 0, the higher the inequality. The score of 1.0 (or 100) indicates total inequality where only one person’s corners all the income. It is used also as a measure of other distributional inequalities such as market share. 2. Explain how many of the world's population live in poverty and define how you measured that poverty level. Answer: More than 80% of the world’s population live in poverty. You can measure the poverty level by examining global inequality and using the Gini Index to measure that. 3. What is the Human Development Index (HDI) and what is it used for?
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Unformatted text preview: Answer: The Human Development Index is a composite statistic used to rank countries by level of human development and separate very high human development, high human development, medium human development, and low human development countries. The HDI is a comparative measure of life expectancy, literacy, education and standards of living for countries worldwide. 4. How has the population of Western nations changed from 1900 to 2000 in terms of the percentage of the world's total population? Answer: The general population of the world has generally been experiencing an increase. This means that the wealth gap between high and low income countries will most likely widen, and growth will continue to strain the earths ecosystems. The West is in demographic decline compared with other parts of the world....
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