1.1. GDP per capita is a measure of a country’s economic output that accounts for population. Figure 4 shows the population and gross domestic product (GDP) for Vietnam in 2016.

Figure 4

(Source: © 2018 The World Bank Group)

Calculate, to two decimal places, the GDP per capita for Vietnam in 2016. You are advised to show your working.

1.2. The unemployment rate fell in Vietnam between 2015 and 2016 but in the same period the inflation rate increased.

Analyse how a fall in unemployment may have caused an increase in Vietnam’s inflation rate.

1.3. A report by the charity Oxfam, stated that Vietnam has 210 super-rich people. Their combined earnings for one year are enough to take 3.2 million people out of poverty and end absolute poverty in Vietnam. To reduce inequality and poverty, Oxfam is calling on international leaders to increase taxes to fund healthcare, education and job creation. Oxfam also asked business leaders to pay employees a living wage and pay their fair share of tax.

With reference to the data above and your knowledge of economics, evaluate whether an increase in progressive taxes is the most effective way to reduce inequality and poverty for a country such as Vietnam.