Gce Model Questions Vol1 2021 Economics Question 49
Practice objective / multiple choice question 49 from the 2021 Gce Model Questions Vol1 Economics examination.
Country X has a current GDP per capita of \$4,000, a Gini coefficient of 0.45 and 30 % of its population living below the poverty line of \$2,000. The government plans to increase public investment, which is expected to raise GDP per capita by 5 % per year, reduce the Gini coefficient by 0.02 each year, and lower the poverty rate by 2 percentage points each year, all for the next three years. Assuming the changes are linear and independent, compute after three years: (a) the GDP per capita, (b) the Gini coefficient, (c) the poverty rate, and (d) briefly assess whether the country has achieved both economic growth and development improvements.
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About This Question
This is Gce Model Questions Vol1 2021 Economics Question 49. It is one of the objective questions from the 2021 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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