1.

Most development economists now seem to agree that the level and rate of growth of GNI and per capita
income do not provide sufficient measures of a country’s development. What is the essence of their
argument? Give some examples. (15points)

2. What is meant by absolute poverty? What measures of income poverty are favored by development
economists? How do these measures differ from the UNDP’s Multidimensional Poverty Index? Why should
we be concerned with the meas- urement of poverty in developing nations? (25 points)

3. In the text, when we examined statistics from a wide range of developing countries. We found that growth
does not guarantee poverty reduc- tion; while higher income is clearly associated with less poverty,
economies can even reach upper-middle-income status but continue to struggle with a quite high incidence
of extreme poverty. What does this tell us about the importance of the character of a nation’s growth process
and about its institutional structure? (25 points)

4. What are the principale economic characteristics of high-poverty groups? What do these characteris-tics tell
us about the possible nature of a poverty- focused development strategy? (15 points)

5. “The major determinant of a country’s income distribution is its distribution of productive and income-
earning assets.” Explain the meaning of this statement, giving examples of different kinds of productive and
income-earning assets. (20 points)