Econ210-003: Problem Set 1
Questions are from The Practice of Statistics for Business and Economics, 3rd Ed.
Keep each answer within 150 words.
1.13 Employee application data. The personnel department k
World Bank is the main institution in charge of eradicating poverty. Most of its programs are geared
towards poverty reduction.
Relevant welfare measure
o Monetary measures: income, consumption.
Difficult to measure
Once you have a measure, you n
Global inequality is shaped by Africa, China and the USA.
Graph 2 (pyramid) How skewed?
Wealth is much more unequally distributed than income. Countries do redistribute incomes but
we do not redistribute wealth.
The global distribution of w
FDI = investment in real assets (factories, etc.) not financial assets.
Institutions: poorer countries have a higher risk of expropriation.
Complementarities: capital needs to be complemented with an adequately trained workforce.
Midterm structure Connect
Need to look at possible policies that address both positive and normative issues.
Top income shares
The percentage of the countrys income that goes to the X% richest portion of the population.
The Keira Kni