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Questions › DSE › DSE 2013 › Q10
1 markEconomics of Growth and Development › Poverty, inequality and human development › Inequality, growth and the Kuznets curveHardabout 3 min

DSE 2013 Question 10: Poverty, inequality and human development

Table 2 (Datt and Ravallion, EPW 2010): the elasticity EEE of HHH with respect to mean consumption CCC is, pre-1991, −1.6-1.6−1.6 (NSS) and −1.0-1.0−1.0 (NAS); post-1991, −2.1-2.1−2.1 (NSS) and −0.7-0.7−0.7 (NAS). Using also the rates of change of HHH from Table 1 (−1.1-1.1−1.1 pre, −2.4-2.4−2.4 post), we can conclude that both before and after 1991, mean consumption per capita according to NAS was:

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Table 2 (Datt and Ravallion, EPW 2010): the elasticity E of H with respect to mean consumption C is, pre-1991, -1.6 (NSS) and -1.0 (NAS); post-1991, -2.1 (NSS) and -0.7 (NAS). Using also the rates of change of H from Table 1 (-1.1 pre, -2.4 post), we can conclude that both before and after 1991, mean consumption per capita according to NAS was: (A) Lower than mean consumption per-capita according to NSS (B) Growing faster than mean consumption per-capita according to NSS (C) Growing slower than mean consumption per-capita according to NSS (D) None of the above

Poverty, inequality and human development has come up 92 times in 7 exams since 2010.

What this question tests

This question is on Inequality, growth and the Kuznets curve, part of Poverty, inequality and human development in Economics of Growth and Development.

How inequality is thought to change as an economy develops.

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Question from the DSE 2013 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.