ECS3709 Assignment 5
(COMPLETE ANSWERS)
Semester 2 2024 - DUE 24
October 2024
CONTACT:
, ECS3709 Assignment 5 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 24 October 2024
CONTACT:
SECTION A [20 Marks] A1 Comparative Living Standards,
Savings, and Economic Growth (a) Discuss how the
measurement of living standards between countries can
influence our understanding of economic growth. (6) (b)
Using real life examples, explain the role of savings in
promoting economic growth and how differences in
savings rates between countries might affect their long-
term growth prospects. (4) A2 Technological Progress,
Unemployment, Inequality, and Economic Growth
Questions (a), (b) and (c) are based on the following
table: (a) Using the data provided in the table, discuss the
relationship between technological progress and
economic growth. (6)
A1 Comparative Living Standards, Savings, and Economic Growth
(a) Measurement of Living Standards and Economic Growth (6 marks)
The measurement of living standards between countries helps economists and policymakers
understand how well citizens in different nations are doing in terms of income, consumption,
health, and overall quality of life. The most common measures include Gross Domestic Product
(GDP) per capita, the Human Development Index (HDI), and purchasing power parity
(PPP) adjustments. These metrics influence how we assess economic growth because they
highlight different aspects of a country’s economic performance:
GDP per capita measures the average income per person, which can indicate the
country's level of wealth and productivity. However, it doesn’t capture income inequality
or non-monetary aspects of welfare, such as health and education.
Human Development Index (HDI) includes factors like life expectancy, education, and
standard of living. It provides a more comprehensive view of well-being but may mask
economic inequalities within countries.
Purchasing Power Parity (PPP) adjusts for the cost of living across different countries.
It provides a more accurate comparison of living standards by accounting for the relative
cost of goods and services in each country.
(COMPLETE ANSWERS)
Semester 2 2024 - DUE 24
October 2024
CONTACT:
, ECS3709 Assignment 5 (COMPLETE ANSWERS)
Semester 2 2024 - DUE 24 October 2024
CONTACT:
SECTION A [20 Marks] A1 Comparative Living Standards,
Savings, and Economic Growth (a) Discuss how the
measurement of living standards between countries can
influence our understanding of economic growth. (6) (b)
Using real life examples, explain the role of savings in
promoting economic growth and how differences in
savings rates between countries might affect their long-
term growth prospects. (4) A2 Technological Progress,
Unemployment, Inequality, and Economic Growth
Questions (a), (b) and (c) are based on the following
table: (a) Using the data provided in the table, discuss the
relationship between technological progress and
economic growth. (6)
A1 Comparative Living Standards, Savings, and Economic Growth
(a) Measurement of Living Standards and Economic Growth (6 marks)
The measurement of living standards between countries helps economists and policymakers
understand how well citizens in different nations are doing in terms of income, consumption,
health, and overall quality of life. The most common measures include Gross Domestic Product
(GDP) per capita, the Human Development Index (HDI), and purchasing power parity
(PPP) adjustments. These metrics influence how we assess economic growth because they
highlight different aspects of a country’s economic performance:
GDP per capita measures the average income per person, which can indicate the
country's level of wealth and productivity. However, it doesn’t capture income inequality
or non-monetary aspects of welfare, such as health and education.
Human Development Index (HDI) includes factors like life expectancy, education, and
standard of living. It provides a more comprehensive view of well-being but may mask
economic inequalities within countries.
Purchasing Power Parity (PPP) adjusts for the cost of living across different countries.
It provides a more accurate comparison of living standards by accounting for the relative
cost of goods and services in each country.
