Podcast
Questions and Answers
Which of the following countries has entered stage 3 of the demographic transition?
Which of the following countries has entered stage 3 of the demographic transition?
What primarily prevents some developing countries from progressing beyond stage 2 in demographic transition?
What primarily prevents some developing countries from progressing beyond stage 2 in demographic transition?
What is a significant factor contributing to high fertility rates in developing countries?
What is a significant factor contributing to high fertility rates in developing countries?
Which of the following best describes the situation in sub-Saharan Africa regarding demographic transition?
Which of the following best describes the situation in sub-Saharan Africa regarding demographic transition?
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Which factor has recently exacerbated the demographic challenges in some regions?
Which factor has recently exacerbated the demographic challenges in some regions?
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What is one way suggested to encourage families to desire fewer children?
What is one way suggested to encourage families to desire fewer children?
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In non-unitary household models, what drives the difference in offspring preferences between husbands and wives?
In non-unitary household models, what drives the difference in offspring preferences between husbands and wives?
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What factor has been statistically shown to correlate with lower fertility levels in developing countries?
What factor has been statistically shown to correlate with lower fertility levels in developing countries?
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What phenomenon is explained by higher investment in husbands’ farm plots compared to wives’ plots?
What phenomenon is explained by higher investment in husbands’ farm plots compared to wives’ plots?
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What is one expected outcome of increased educational and employment opportunities for women?
What is one expected outcome of increased educational and employment opportunities for women?
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What characterizes Stage 1 of the demographic transition?
What characterizes Stage 1 of the demographic transition?
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What primarily initiates Stage 2 of the demographic transition?
What primarily initiates Stage 2 of the demographic transition?
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In Stage 3 of the demographic transition, what trend is primarily observed?
In Stage 3 of the demographic transition, what trend is primarily observed?
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During which historical period did Western Europe begin its demographic transition?
During which historical period did Western Europe begin its demographic transition?
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What is the calculated replacement fertility level in developed countries?
What is the calculated replacement fertility level in developed countries?
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What marked the significant rise in population growth during Stage 2?
What marked the significant rise in population growth during Stage 2?
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By the end of the demographic transition, how did birth and death rates relate in Western Europe?
By the end of the demographic transition, how did birth and death rates relate in Western Europe?
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How did the relationship between birth rates and death rates evolve throughout the demographic transition in Western Europe?
How did the relationship between birth rates and death rates evolve throughout the demographic transition in Western Europe?
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What population growth pattern was observed at the historical stage of demographic transition in Western Europe?
What population growth pattern was observed at the historical stage of demographic transition in Western Europe?
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In Stage 3, what is the birth rate trend in developing countries with low survival rates?
In Stage 3, what is the birth rate trend in developing countries with low survival rates?
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What is one immediate effect of increased female education on household dynamics?
What is one immediate effect of increased female education on household dynamics?
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What can lead to a decrease in fertility rates among the very poor?
What can lead to a decrease in fertility rates among the very poor?
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How does better public health contribute to fertility rates?
How does better public health contribute to fertility rates?
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What implication does educating women have on child survival?
What implication does educating women have on child survival?
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Which factor is likely NOT essential for the decline in birth rates among the very poor?
Which factor is likely NOT essential for the decline in birth rates among the very poor?
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How does social and economic progress affect fertility in developing countries?
How does social and economic progress affect fertility in developing countries?
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What role does increased female wage employment play in fertility rates?
What role does increased female wage employment play in fertility rates?
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What is a consequence of reduced economic dependence on children for parents?
What is a consequence of reduced economic dependence on children for parents?
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What does the Malthusian population trap imply will happen if population growth exceeds income growth?
What does the Malthusian population trap imply will happen if population growth exceeds income growth?
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According to Malthus, what was necessary to avoid falling into a population trap?
According to Malthus, what was necessary to avoid falling into a population trap?
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What is suggested as a way for a country to escape the Malthusian population trap?
What is suggested as a way for a country to escape the Malthusian population trap?
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Which criticism of the Malthusian population trap is related to technological progress?
Which criticism of the Malthusian population trap is related to technological progress?
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How does the microeconomic household theory of fertility explain family size decisions?
How does the microeconomic household theory of fertility explain family size decisions?
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What does the opportunity cost in the context of fertility decisions involve?
What does the opportunity cost in the context of fertility decisions involve?
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In regions of high mortality, how might parents adjust their fertility decisions?
In regions of high mortality, how might parents adjust their fertility decisions?
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What is a primary benefit parents expect from having additional children in poorer societies?
What is a primary benefit parents expect from having additional children in poorer societies?
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The demographic transition correlates population growth rates to levels of which economic factor?
The demographic transition correlates population growth rates to levels of which economic factor?
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What happens when both population growth and total income growth rates are equal?
What happens when both population growth and total income growth rates are equal?
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Which characterizes the Malthusian stable equilibrium point S?
Which characterizes the Malthusian stable equilibrium point S?
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What does the household theory of fertility assume about the relationship between income and desired family size?
What does the household theory of fertility assume about the relationship between income and desired family size?
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Which of the following does not align with the household theory of fertility?
Which of the following does not align with the household theory of fertility?
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Study Notes
Development Economics
- The presentation is on Development Economics, SOCSC13, by R.Lance Chua, MA, PPT4.
- Topics covered include market fundamentalism and population growth, the demographic transition, the Malthusian population trap, and criticisms of the trap, as well as the microeconomic household theory of fertility.
Market Fundamentalism & Population Growth
- This section focuses on the relationship between market fundamentalism and population growth. This includes the idea of "lost boys coffee" and some images of streets and buildings.
The Demographic Transition
- The presentation introduces the demographic transition as a process where fertility rates eventually fall to stable levels.
- It explains the three stages of modern population history.
- Stage 1: Stable or slow-growing populations resulted from high birth and high death rates.
- Stage 2: Improved public health, diets, and incomes led to a decrease in mortality rates. Life expectancy increased from under 40 to over 60 years.
- Birth rate remained high without a corresponding decrease. This resulted in population growth.
- Stage 3: The forces of modernization and development caused a decline in fertility, resulting in little or no population growth. The replacement fertility rate is about 2.05 to 2.1 births per woman.
The Malthusian population trap is a theory proposed by economist Thomas Malthus in the late 18th century. It suggests that population growth will always tend to outpace food supply growth, leading to periodic famines, disease outbreaks, and decline in population levels. Malthus argued that while population grows geometrically, food production can only increase arithmetically. Consequently, when population exceeds the food supply, the excess population will face starvation and other hardships, bringing the numbers back down to sustainable levels. This theory has been a significant point of discussion and debate in development economics, as it raises questions about sustainability, resource allocation, and the capacity of economies to support growing populations. Critics of the Malthusian perspective argue that advancements in technology and agricultural practices can mitigate these issues, suggesting that human innovation can keep pace with population growth.
- Thomas Malthus proposed a theory about the relationship between population and economic development.
- His 1798 Essay on the Principle of Population proposes a pattern of population growth doubling every 30-40 years.
- Population growth surpasses food production (arithmetic increase) leading to a decline in per capita income, returning to a subsistence level.
- Factors like diminishing returns on land contribute to a population trap.
- The curves cross at a low level, subsistence, of income.
Criticisms of Malthusian Trap
- The trap is based on unrealistic assumptions and has been critiqued empirically based on the history of modern economic growth.
- Technological progress and increasing returns to scale are not accounted for in the model.
- Research has shown no significant correlation between population growth and per capita income, particularly at low levels.
- Modern medicine and health programs have reduced death rates.
- Birth rates vary widely even with similar per capita incomes. The distribution of income, not just the aggregate, is more important.
Microeconomic Household Theory of Fertility
- Economists now use a macroeconomic approach that looks at the factors influencing family fertility decisions.
- Households have a target number of surviving children.
- Children are treated as a form of consumption good.
- Factors like relative price of children, opportunity cost of raising children, income levels, etc are determinants to family size decisions.
- Bargaining between partners within the family is critical in understanding household behavior, particularly for poor families.
Empirical Evidence
- Studies in various developing countries demonstrate a relationship between lower fertility and factors like female education, employment opportunities outside the home, and school attendance.
- Advances in education and employment for women influence fertility levels.
- A correlation exists between declining child mortality and decreased fertility.
Implications for Development and Fertility
- Population growth rates can be reduced through several policies such as educating women, improving child nutrition, public health programs, expanded social security systems, and improvements in income for the poor.
- Increased employment opportunities and income equality help reduce fertility amongst the poor
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Description
Explore key concepts in Development Economics from the SOCSC13 course by R. Lance Chua. This quiz covers topics such as market fundamentalism, the demographic transition, the Malthusian population trap, and household fertility theory. Test your understanding of how these elements interact within economic frameworks.
