Economics Lesson 3: Application in Poverty and Security
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Questions and Answers

What is one method mentioned for increasing farmers' income?

  • Increasing land taxes on farmers
  • Implementing food self-sufficiency programs
  • Diversifying agricultural crop production (correct)
  • Reducing the types of crops cultivated

    • What plays a similar role to human capital in economic growth?

  • Government regulations on trade
  • Physical infrastructure development (correct)
  • Environmental conservation efforts
  • Population control policies

    • What is a significant reason for inadequate infrastructure in many low-income countries?

  • Weak labor force availability
  • Insufficient funds to finance construction (correct)
  • High rates of immigration
  • Overpopulation in urban areas

    • What infrastructure project is noted to be particularly costly?

    <p>Setting up mass transit subway systems</p> Signup and view all the answers

    Which of the following is NOT mentioned as suffering from inadequate infrastructure?

    <p>Wealthy tourists</p> Signup and view all the answers

    What is the primary focus of absolute poverty?

    <p>Access to basic life necessities</p> Signup and view all the answers

    Which organization defines absolute poverty as living on less than $2.15 per day?

    <p>World Bank</p> Signup and view all the answers

    What distinguishes absolute poverty from relative poverty?

    <p>Absolute poverty is a fixed global standard.</p> Signup and view all the answers

    Which of the following is NOT considered an essential need in absolute poverty?

    <p>Leisure activities</p> Signup and view all the answers

    What does the term 'fixed threshold' refer to in the context of absolute poverty?

    <p>A universal standard for measuring poverty.</p> Signup and view all the answers

    Which of the following best describes relative poverty?

    <p>A measure compared to a specific society's living standards.</p> Signup and view all the answers

    Which need is NOT specifically highlighted under absolute poverty's focus on basic needs?

    <p>Access to internet services</p> Signup and view all the answers

    Which condition is most representative of individuals living in absolute poverty?

    <p>Severe deprivation of basic human necessities</p> Signup and view all the answers

    What distinguishes absolute poverty from relative poverty?

    <p>It is primarily concerned with survival and basic human needs.</p> Signup and view all the answers

    Why is absolute poverty considered a violation of human rights?

    <p>It prevents access to necessities needed for survival and dignity.</p> Signup and view all the answers

    How is absolute poverty measured and addressed by international organizations?

    <p>Using global benchmarks like the Sustainable Development Goals.</p> Signup and view all the answers

    In which regions is absolute poverty most commonly found?

    <p>Widely in developing or low-income countries.</p> Signup and view all the answers

    What role does absolute poverty play as a development indicator?

    <p>It serves as a critical metric for assessing global development efforts.</p> Signup and view all the answers

    Which option illustrates an example of absolute poverty?

    <p>A resident in rural Sub-Saharan Africa lacking clean water and enough food.</p> Signup and view all the answers

    What is one primary focus of addressing absolute poverty?

    <p>To ensure survival by eliminating the risk of starvation and disease.</p> Signup and view all the answers

    Which of the following is a key feature of absolute poverty?

    <p>It leads to high mortality rates, especially among children.</p> Signup and view all the answers

    What is the primary difference between absolute poverty and relative poverty?

    <p>Absolute poverty is defined by a lack of basic necessities, while relative poverty focuses on inequality within society.</p> Signup and view all the answers

    Which of the following best describes social exclusion in the context of relative poverty?

    <p>The inability to participate fully in society due to lack of access to essential resources.</p> Signup and view all the answers

    What does relative poverty highlight within a society?

    <p>Economic inequality</p> Signup and view all the answers

    How is relative poverty often quantified in many countries?

    <p>By setting income thresholds based on median income.</p> Signup and view all the answers

    Which of the following is an intervention specifically aimed at addressing relative poverty?

    <p>Improving income distribution</p> Signup and view all the answers

    What typically characterizes the dynamic nature of relative poverty?

    <p>It is influenced by changes in the overall standard of living within society.</p> Signup and view all the answers

    In a high-income country, which scenario exemplifies relative poverty?

    <p>Having food and shelter but lacking internet access and savings for retirement.</p> Signup and view all the answers

    What is a key objective of governments utilizing relative poverty measures?

    <p>To establish minimum wage laws</p> Signup and view all the answers

    Which of the following interventions can enhance agricultural productivity?

    <p>Organizing small farmers into cooperatives</p> Signup and view all the answers

    Which option accurately reflects a key feature of relative poverty?

    <p>It incorporates social comparisons relative to the broader population.</p> Signup and view all the answers

    What is meant by food security in an economic context?

    <p>Having sufficient income to purchase food at the best prices</p> Signup and view all the answers

    What might shift the classification of relative poverty over time?

    <p>Evolving norms and expectations within society regarding living standards.</p> Signup and view all the answers

    Which statement about relative poverty is accurate?

    <p>It can change within a lifetime based on economic mobility.</p> Signup and view all the answers

    To improve food self-sufficiency, which area should be prioritized according to the content?

    <p>Developing agriculture, especially food grain production</p> Signup and view all the answers

    What creates potential social tensions within a society?

    <p>Economic inequality between different income groups</p> Signup and view all the answers

    Which of the following strategies can contribute to achieving food security?

    <p>Investing in irrigation facilities</p> Signup and view all the answers

    Study Notes

    Application of Economics

    • Economics plays a crucial role in addressing and solving poverty issues.
    • Focuses on enhancing food security and improving infrastructure.

    Understanding Poverty

    • Poverty is the inability to meet minimum subsistence levels for families.
    • Two main categories of poverty: Absolute Poverty and Relative Poverty.

    Absolute Poverty

    • Defined as the inability to secure basic survival necessities.

    • Key features:

      • Fixed Threshold: Universally measured; World Bank sets it at living on less than $2.15/day (~₱120).
      • Focus on Basic Needs: Includes access to food, clean water, shelter, healthcare, sanitation, and education.
      • Global Measure: Standardized across countries; used by organizations like the UN to monitor poverty.
      • Life-Threatening: Linked to high mortality rates due to deprivation.
      • Prevalence in Developing Nations: Common in low-income countries with weak infrastructures and social services.

    • Example: A person in rural Sub-Saharan Africa lacking clean water and food is living in absolute poverty.

    Importance of Addressing Absolute Poverty

    • Human Rights: Violates access to survival essentials; considered an ethical obligation for governments and organizations.
    • Development Indicator: Key for global initiatives like the Sustainable Development Goals (SDGs) aiming to eradicate extreme poverty by 2030.
    • Focus on Survival: Targets survival rather than relative inequalities within societies.
    • Aid Target: Guides international aid efforts to improve access to basic necessities.

    Relative Poverty

    • Refers to individuals being poor in the context of societal standards.

    • Key features:

      • Social Comparison: Measured by comparing to the broader society’s living standards.
      • Income Threshold: Defined by earning significantly less than national median income (e.g., less than 50%-60% of median income).
      • Social Exclusion: Can hinder participation in society, leading to inequalities.
      • Dynamic Nature: Changes with societal standards; varies between countries and over time.

    • Example: A person with basic needs in a wealthy country may still be viewed as living in relative poverty if unable to participate in social activities.

    Importance of Addressing Relative Poverty

    • Inequality Highlight: Shows gaps between rich and poor within a society, raising social tension.
    • Policy Focus: Influences government policies to ensure fulfilling a socially acceptable quality of life for all citizens.

    Interventions to Alleviate Poverty

    • Absolute Poverty:
      • Provision of free meals, housing, and clothing.
    • Relative Poverty:
      • Improvement of income distribution through taxation and income transfer programs.

    Economics of Food Security

    • Essential for a nation to achieve self-sufficiency and ensure citizens can afford food.

    • Focused on agricultural development, particularly food grain production.

    • Strategies to enhance food security:

      • Investment in irrigation and energy infrastructure.
      • Affordable fertilizers and agricultural inputs.
      • Organizing small farmers into cooperatives to benefit from economies of scale.
      • Building farm-to-market roads for efficient distribution.

    • Aim is not just self-sufficiency but increasing farmers' incomes to afford food from wider markets.

    Economics of Infrastructure

    • Strong infrastructure is vital for economic growth, enabling transactions and business activities.

    • Key components include:

      • Road construction and bridge building.
      • Transportation and communication networks.
      • Reliable energy supply critical for households and businesses.

    • Many low-income countries, like the Philippines, face inadequate infrastructure affecting individuals, households, and the economy.

    Challenges in Infrastructure Development

    • Insufficient funding for the expansive construction of necessary networks.
    • High costs associated with energy plant constructions and urban mass transit systems can be prohibitively expensive.

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    Description

    This quiz focuses on the applications of economics in addressing critical issues like poverty, food security, and infrastructure development. Participants will explore how economic principles can contribute to solving these challenges faced by societies. Test your understanding of these concepts with this informative quiz!

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