INTL 102 FINAL EXAM STUDY GUIDE

INTL 102 FINAL EXAM STUDY GUIDE - INTL 102 FINAL EXAM STUDY...

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INTL 102 FINAL EXAM STUDY GUIDE I. Introduction: Concepts, Tools and Measurements #4 What do we mean by the distribution of income and how do we measure it? - distribution of income = measure of inequality; capture income of individual or group compared to others - measurement of inequality by comparing income, assets or wealth, distribution of services, health/education or quality of life measures What are the pros and cons of different inequality measures, for example, the Gini vs. the income shares of the bottom quartile? - gini coefficient = draws a line that shows cumulative share of income earned by cumulative share of the population (Lorenz curve) & gini is area between the diagonal and the curve divided by the whole area of the triangle o pros – can be constructed not only for income, but for assets such as land and education; compare different countries by their Gini coefficient o cons – not sensitive to income at bottom of distribution - income shares of the bottom quartile - look at incomes shares of different income groups o pro - more direct way of capturing how poorest groups are faring II. Growth, Poverty and Inequality #1 What do we mean by economic growth, and what is the relationship between growth and poverty both across countries and over time? - economic growth increases employment and wages; economic growth good for poor - unequal societies grow less rapidly than more equal ones; more corrupt - inequality in income and assets is because unequal investment in human capital, government services and political biases; breeds social and political resentments #2 How do we measure growth? - growth measured by increase in GDP o GDP measured by expenditure or income approach III. The Role of State: Public Policy and Politics General #2 What are the issues associated with government transfers to the poor? What are some of
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INTL 102 FINAL EXAM STUDY GUIDE - INTL 102 FINAL EXAM STUDY...

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