1. (a) What is the usual indicator of living standards? (b) How is this indicator of living standards calculated ? (c) What are the problems with this indicator? 2. Consider a country whose national income is $750 Million and whose population is 12.5 million. Assume in this country that the rich are 20% of the population and own 85% of the nationís income. (a) The income per capita of the nation = (b) The income per capita of the rich = (c) The income per capita of the poor = (d) If the total income of the rich increases by 50%, the new nationís income = (e) If the total income of the rich increases by 50%, the new nationís income per capita = (f) The growth rate of the nationís income per capita = (g) Can we conclude that the living standards have improved in this country? Why?
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