Development Economics SOCSC13 Overview
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Questions and Answers

Which of the following countries has entered stage 3 of the demographic transition?

  • Cuba (correct)
  • Middle East
  • Sri Lanka (correct)
  • Sub-Saharan Africa

What primarily prevents some developing countries from progressing beyond stage 2 in demographic transition?

  • Low levels of technology
  • High dropout rates in education
  • Increased birth rates
  • Widespread absolute poverty (correct)

What is a significant factor contributing to high fertility rates in developing countries?

  • Low levels of living (correct)
  • High levels of living
  • Government policies
  • Education access

Which of the following best describes the situation in sub-Saharan Africa regarding demographic transition?

<p>Still in stage 2 with very high fertility (D)</p> Signup and view all the answers

Which factor has recently exacerbated the demographic challenges in some regions?

<p>AIDS epidemic (C)</p> Signup and view all the answers

What is one way suggested to encourage families to desire fewer children?

<p>Raising the price of child rearing (B)</p> Signup and view all the answers

In non-unitary household models, what drives the difference in offspring preferences between husbands and wives?

<p>Economic bargaining power (C)</p> Signup and view all the answers

What factor has been statistically shown to correlate with lower fertility levels in developing countries?

<p>High female employment opportunities (D)</p> Signup and view all the answers

What phenomenon is explained by higher investment in husbands’ farm plots compared to wives’ plots?

<p>Inefficient household bargaining dynamics (B)</p> Signup and view all the answers

What is one expected outcome of increased educational and employment opportunities for women?

<p>A shift to fewer children for families (C)</p> Signup and view all the answers

What characterizes Stage 1 of the demographic transition?

<p>Stable or slow-growing populations with high birth and death rates (D)</p> Signup and view all the answers

What primarily initiates Stage 2 of the demographic transition?

<p>Marked reduction in mortality from economic modernization (B)</p> Signup and view all the answers

In Stage 3 of the demographic transition, what trend is primarily observed?

<p>Decline in fertility rates leading to stable populations (D)</p> Signup and view all the answers

During which historical period did Western Europe begin its demographic transition?

<p>First quarter of the nineteenth century (C)</p> Signup and view all the answers

What is the calculated replacement fertility level in developed countries?

<p>2.05 to 2.1 births per woman (C)</p> Signup and view all the answers

What marked the significant rise in population growth during Stage 2?

<p>Decrease in mortality coupled with unchanged birth rates (D)</p> Signup and view all the answers

By the end of the demographic transition, how did birth and death rates relate in Western Europe?

<p>Birth rates remained fluctuating while death rates stabilized (B)</p> Signup and view all the answers

How did the relationship between birth rates and death rates evolve throughout the demographic transition in Western Europe?

<p>Death rates stabilized before birth rates declined (D)</p> Signup and view all the answers

What population growth pattern was observed at the historical stage of demographic transition in Western Europe?

<p>Growth rates seldom exceeded 1% at their peak (C)</p> Signup and view all the answers

In Stage 3, what is the birth rate trend in developing countries with low survival rates?

<p>Birth rates are well above replacement levels (C)</p> Signup and view all the answers

What is one immediate effect of increased female education on household dynamics?

<p>Higher share of household income for women (D)</p> Signup and view all the answers

What can lead to a decrease in fertility rates among the very poor?

<p>Increase in the education of women (A)</p> Signup and view all the answers

How does better public health contribute to fertility rates?

<p>By lowering infant mortality rates (C)</p> Signup and view all the answers

What implication does educating women have on child survival?

<p>It increases the chances that the firstborn will survive. (D)</p> Signup and view all the answers

Which factor is likely NOT essential for the decline in birth rates among the very poor?

<p>Decrease in schooling opportunities (A)</p> Signup and view all the answers

How does social and economic progress affect fertility in developing countries?

<p>Decreases fertility when benefits are widely shared. (C)</p> Signup and view all the answers

What role does increased female wage employment play in fertility rates?

<p>Decreases the financial burden of child-rearing. (C)</p> Signup and view all the answers

What is a consequence of reduced economic dependence on children for parents?

<p>Greater motivation for smaller families. (C)</p> Signup and view all the answers

What does the Malthusian population trap imply will happen if population growth exceeds income growth?

<p>Per capita income will fall. (A)</p> Signup and view all the answers

According to Malthus, what was necessary to avoid falling into a population trap?

<p>Limiting the number of children. (B)</p> Signup and view all the answers

What is suggested as a way for a country to escape the Malthusian population trap?

<p>Achieving technological progress. (D)</p> Signup and view all the answers

Which criticism of the Malthusian population trap is related to technological progress?

<p>It overlooks increasing returns to scale due to innovation. (D)</p> Signup and view all the answers

How does the microeconomic household theory of fertility explain family size decisions?

<p>Children are viewed as a consumption good whose demand varies with income. (C)</p> Signup and view all the answers

What does the opportunity cost in the context of fertility decisions involve?

<p>The potential income lost by the mother by not working. (D)</p> Signup and view all the answers

In regions of high mortality, how might parents adjust their fertility decisions?

<p>They have more children than they desire. (B)</p> Signup and view all the answers

What is a primary benefit parents expect from having additional children in poorer societies?

<p>Higher expected income from child labor. (D)</p> Signup and view all the answers

The demographic transition correlates population growth rates to levels of which economic factor?

<p>Household income. (D)</p> Signup and view all the answers

What happens when both population growth and total income growth rates are equal?

<p>Income per capita remains unchanged. (A)</p> Signup and view all the answers

Which characterizes the Malthusian stable equilibrium point S?

<p>Income per capita is at subsistence levels. (D)</p> Signup and view all the answers

What does the household theory of fertility assume about the relationship between income and desired family size?

<p>Higher income allows for more desired children. (C)</p> Signup and view all the answers

Which of the following does not align with the household theory of fertility?

<p>Fertility decisions are solely based on cultural beliefs. (B)</p> Signup and view all the answers

Flashcards

Demographic Transition

The process where fertility rates naturally fall to stable low levels, usually seen in developed nations.

Stage 1 of Demographic Transition

High birth rates matching high death rates, leading to stable or slow population growth.

Stage 2 of Demographic Transition

Falling death rates due to improved health, but birth rates remain high, resulting in rapid population growth.

Stage 3 of Demographic Transition

Falling birth rates approaching a fertility rate of 2.05-2.1 (for developed countries), eventually converging with the lower death rate, stabilizing population growth.

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Population Replacement Fertility

The level of fertility where the population is stable, around 2.1 births per woman (developed countries).

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Modernization in Demographic Transition

Economic and social advancements improving health, leading to lower death rates and possibly lower birth rates.

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High Birth Rates

High numbers of births per woman in a society.

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Falling Death Rates

Decrease in the number of deaths in a population.

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Population Growth Rate

The rate at which a population increases or decreases.

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Western Europe Demographic Transition

Shows the stages of population growth/decline in Western Europe over time, from stable to slowly increasing then decreasing rates.

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Stage 2 Demographics

Countries in this stage experience falling death rates due to improved health, but birth rates remain high, resulting in rapid population growth.

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Stage 3 Demographics

Countries in this stage have experienced a rapid decline in overall population growth due to falling birth rates and already low death rates.

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Factors Affecting Stage 2

The persistence of widespread absolute poverty and low levels of living, combined with the AIDS epidemic, prevents death rates from dropping further in some developing countries.

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What Delays Stage 3?

High fertility rates in developing countries, often due to low levels of living, prevent a transition to stage 3, where population growth slows down.

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Causes of High Fertility

High birth rates in developing countries are caused by factors like poverty, lack of education, and cultural norms that value large families.

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Household Bargaining Power

The ability of individual members of a household (like husbands and wives) to influence decisions, especially related to family size.

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Non-Unitary Household Model

Instead of a family acting as one unit, this model recognizes that individual members within a family have different goals and negotiate to reach decisions.

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Why Does the Household Bargaining Model Matter?

This model helps us understand why families sometimes make decisions that seem inefficient, like unequal investment in a farm.

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Increased Female Bargaining Power Impact

Greater opportunities for women (education, jobs) can lead to more influence in household decisions, potentially influencing the number of children desired.

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Factors Influencing Fertility

Economic opportunities for women, especially those offering higher pay and education, are strongly linked to lower fertility rates.

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Education's Impact on Fertility

Higher levels of female education are linked to lower fertility rates, as women earn more, have more control over their lives, and have fewer children.

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Income and Fertility

Increased household income, especially for women, leads to fewer children because families can afford to provide for fewer children with better quality care.

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Child Mortality and Fertility

Declines in child mortality, often due to improved healthcare, lead to lower fertility rates because families need fewer children to ensure a certain number survive.

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Social Security and Fertility

Social security systems, especially those for the elderly, lessen the economic dependence of parents on their offspring, thus reducing the desire for many children.

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Education for Quality

Parents with access to education prioritize quality of life for their children, opting for smaller families where they can invest more resources per child.

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Poverty and Fertility

Poverty is a major factor contributing to high birth rates, as families may need more children for labor and financial support.

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Women's Economic Opportunities

Increased female employment, particularly outside of agriculture, raises the cost of child-rearing and encourages smaller families.

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Development and Fertility

Overall economic and social development, especially in developing countries, is fundamental in lowering fertility rates by improving living standards and women's empowerment.

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Malthusian Population Trap

A theory stating that population growth outpaces food production, leading to poverty and a stable population at subsistence levels.

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Diminishing Returns

As more resources are used, each additional unit of resource produces less output, essentially hitting a limit.

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Geometric vs. Arithmetic Growth

Geometric growth doubles at a constant rate, while arithmetic growth increases by a fixed amount.

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Subsistence Level

The minimum income needed for survival, barely enough for basic needs like food and shelter.

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Moral Restraint

Malthus' solution to the population trap, advocating for limiting family size through conscious choices.

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Preventive vs. Positive Checks

Preventive checks are voluntary controls on population (like birth control), while positive checks are natural forces reducing population (like disease or famine).

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Stable Equilibrium

A state where a system remains balanced unless disturbed. In the Malthusian trap, income stabilizes at a low subsistence level, resisting changes.

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Technological Progress

Advancements in technology, techniques, and tools that increase efficiency and productivity, potentially causing shifts in the population trap.

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Economic Institutions and Culture

Factors like laws, regulations, beliefs, and social norms that influence economic activities, potentially influencing fertility decisions.

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Household Theory of Fertility

A microeconomic model that explains fertility decisions as a rational choice by families based on costs and benefits.

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Opportunity Cost of Children

The value of the resources (time, money) forgone by having children, such as the mother's potential income.

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Children as Investment Goods

In some cultures, children are viewed as investments potentially providing future income or support for the family.

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Quality vs. Quantity of Children

Families might choose to have fewer children, but invest more in their education and well-being for higher future income, leading to lower fertility with a higher quality of life for each child.

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Influence of Income Distribution

Not just overall income but how it's distributed among households matters for fertility decisions. Higher income inequality might result in lower fertility for poorer families.

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Criticisms of Malthusian Trap

The Malthusian trap has been criticized for failing to consider technological progress and overlooking that population growth doesn't always correlate with income.

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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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Development Economics SOCSC13 PDF

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.

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