ECON 2111: Practice mid-session exam
2011 Session 2
Time allowed: 1 hour and 30 minutes.
Marks will be given for familiarity with assigned material, clarity of reasoning, and organization.
Part A: You must answer this question
Week 13 Notes
Germany running persistent trade surpluses with Spain leaves three options
Spain can borrow forever to finance the deficit
Germany will begin to run a current account deficit and Spain a current account surplus
Erode the value of those cl
Week 5 Study Questions (EDUCATION)
Banerjee and Duflo: chapter 4
a) Give two examples of supply-side education policies
Primary School construction in Indonesia 1973-1978: 61,000 new schools
Doubled the number of schools and increased number of teacher
Week 8 Study Questions
1 Banerjee and Duflo: Ch 6
a) Write down three concrete sources of risk for the poor that are not sources of risk for
people living in the United States
Income risk e.g. 25-98% of rural poor involved in farming in which income
Week 6 Study Questions
1 Banerjee and Duflo: Chapter 5
a) What do you think of Alwyn Youngs assessment of the impact of HIV on Africa?
In Youngs article the gift of the dying he argued that the HIV/AIDS epidemic
would make future generations of Africans
1 Randomized Experiments
Week 3 Study questions
a) Describe the causal inference problem
How do we know that program P and P alone - caused outcome Y?
=( Y |P=1 ) ( Y |P=0
How do we simultaneously observe two different states of the world?!
one can ne
1 Think Again, Again
WEEK 1 Study Questions
a) Sachs and Easterly debate about how to eradicate poverty:
Jeffery Sachs: Foreign aid is key, it can kick-start a virtuous cycle by helping poor
countries invest in critical areas, such as infertility and mala
Week 2 Study questions
1 Measuring Poverty and Inequality
a) Types of poverty indexes:
Human Development Index (HDI):
Headcount Ratio/Index (HCI):
- % of the pop. whose living standards (typically proxied by consumption) lie below
a given threshold referr
Study Questions Week 9
1 Banerjee and Duflo: Ch 7
a) If the poor are not borrowing from commercial banks, from whom do they borrow?
Through microfinance agencies someone who is not out to make money off
the pooor can enter the market, charging the poor e
Week 10 Study Questions
1 De Janvry and Sadoulet chapter 12
a) The informal sector is becoming an ever-larger part of the urban economy.
Distinguish between the urban formal and informal sectors, and discuss both the
positive and negative aspects of infor
Poverty and Inequality in Mexico
1. Lorenz Curve: the Lorenz curve is a graphical representation of the distribution of income or
wealth. Points on the Lorenz curve represent statements like "the bottom 30% of all households
have 10% of the total income."
ECON2111 Semester 2 2011
TUTORIAL 5 QUESTIONS : WEEK 6
1. Explain using illustrations that shows how an economy makes decision on the
maximum amount to produce given the limited resources.(Choose any two goods)
This is the production possibility curve. Se
Week 7 - Globalisation
Market size and distance between markets determine how much countries buy and sell
Differences in labour and capital create productive advantages for countries
Economies of scale create productive advantages for countries
What Is the Main Source
of Global Instability?
Global financial crisis is triggered by the US sub-prime crisis but become
serious global economic recession because of the persistent global
Who is blamed for the global imbalance: U
Practice Mid-session Exam Globalisation
1(i) Explain briefly what you understand by economic development and
underdevelopment. Provide a few arguments in favour and some arguments against
using GDP per capita as the indicator of development.
Week 4 Study Questions (HEALTH)
1 Banerjee and Duflo: chapter 2
a) Cite two pieces of evidence supporting the assertion that the poor do NOT eat as
much as they can
the average person living at under $1 per day does not seem to put every