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# E) what is average per capita consumption in each country?

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1. Working with development data
Go to the World Bank data website: https://databank.worldbank.org/source/world-development-indicators
Once there, click on the world development indicators links.
Once there, download (under the “Series” tab on the left)
i) GDP per capita (constant 2015 US\$),
ii) GDP per capita, PPP (constant 2017 international \$)
iii) GDP per capita (current US\$)
for Uganda, Guinea, Chile, Malawi, and Australia for the years 2016-2020 (the last five years available). To download a .csv or excel file, use the “download options” in the upper right corner
For the problems below, where appropriate make sure to report the steps / formulas you used to calculate your answer.
a) Present a well formatted table that shows the GDP per capita PPP (constant 2017 international \$) for each of the five countries for each year from 2016 to 2020.
b) Calculate the average yearly growth rate in GDP per capita PPP each country has experienced over the five-year period from 2016-2020.
c) For each country, if they continue the average rate of growth experienced from 2016-2020, approximately how many years will it take to double their GDP per capita PPP from 2020?
d) Assuming they maintain the same average yearly growth rate, how many years will it take for Guinea to reach the same GDP per capita PPP levels seen in Australia in 2020?
e) How many times more purchasing power (i.e. consumption) does the average person from Australia have than the average person from Malawi in their home countries in 2020?
f) How much more purchasing power would the average Australian have than the average person from Malawi, if the Australian were to move to Malawi in 2020? Explain your reasoning behind the calculation.
g) What was Malawi’s average GDP per capita growth rate in current US\$ from 2016-2020? Do you have a hypothesis why this growth rate is different from the one you calculated above? Which measure of growth better reflects “real” changes in welfare in Malawi?
2. Inequality
a) Can a Lorenz curve have this shape? Explain your reasoning.
b) Draw a Lorenz curve for a country where 50% of the population has zero expenditure and the other 50% have positive, but equal expenditure.
c) What is the Gini coefficient for the country described in question b) above?
3. Poverty
Imagine there are two countries each comprised of three people. In country A, the daily expenditure (consumption) in USD of its three citizens is: \$1.5, \$2, and \$2.4. In country B the daily expenditure is \$0.5, \$5, and \$10.
a) Using a poverty line of \$1.25 per day, what is the poverty headcount ratio in each country?
b) Using a poverty line of \$2.5 per day, what is the poverty headcount ratio in each country?
c) Using a poverty line of \$1.25 what is the Foster-Geer-Thorbecke severity of poverty measure for each country?
d) Using a poverty line of \$2.5 what is the Foster-Geer-Thorbecke severity of poverty measure for each country?
e) What is average per capita consumption in each country?
f) Based on your calculations above, which country has a worse poverty problem? Explain your answer.
Please write the answers in order under the questions