Income Elasticity and Nutrition Link
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Questions and Answers

Why are health and education considered important objectives of development?

  • They are directly linked to the country's natural resource endowment.
  • They are crucial components of growth and development. (correct)
  • They are key indicators of a country's GDP.
  • They are related to the country's political stability.

How does education impact a developing country's ability to absorb modern technology?

  • By enhancing the country's capacity for innovation and adaptation. (correct)
  • By increasing the country's population growth rate.
  • By reducing the country's reliance on traditional practices.
  • By limiting the exposure of the country to global advancements.

In 1950, what was the child mortality rate in low-income countries?

  • 4 per 1,000
  • 57 per 1,000
  • 7 per 1,000
  • 280 per 1,000 (correct)

What was the child mortality rate in high-income countries in 2008?

<p>4 per 1,000 (C)</p> Signup and view all the answers

Why is health considered a prerequisite for increases in productivity?

<p>Because productivity is positively correlated with a healthy workforce. (C)</p> Signup and view all the answers

Which disease used to cause more than 5 million deaths annually before it was eradicated?

<p>Smallpox (B)</p> Signup and view all the answers

What is human capital defined as in the text?

<p>Productive investments embodied in human persons (A)</p> Signup and view all the answers

How does greater health capital impact education investments?

<p>It improves the returns to investments in education (D)</p> Signup and view all the answers

Why are health and education considered joint investments for development according to the text?

<p>Because greater health capital may improve the returns to investments in education (A)</p> Signup and view all the answers

How do higher income levels contribute to improved health and education?

<p>By enabling increased spending on health and education (D)</p> Signup and view all the answers

What is an example of the interaction between health and education mentioned in the text?

<p>Educating health personnel on basic hygiene and sanitation (B)</p> Signup and view all the answers

In what way does a longer life impact the rate of return to education?

<p>It raises the rate of return to education (A)</p> Signup and view all the answers

Why might increases in income not necessarily lead to substantial increases in investment in children’s education and health?

<p>Parents prioritize spending their increased income on goods other than education and health (D)</p> Signup and view all the answers

What does the income elasticity of the demand for calories among low-income people indicate?

<p>It ranges from near zero to about 0.5 (B)</p> Signup and view all the answers

How do initial investments in health and education affect future income according to the text?

<p>They lead to a stream of higher future income (D)</p> Signup and view all the answers

What is the significance of better educated mothers on the health of their children according to the text?

<p>Better educated mothers have healthier children at any income level (B)</p> Signup and view all the answers

Why do household consumption choices often result in a small link between income and nutrition for children?

<p>Households focus on increasing food variety rather than calorie consumption (A)</p> Signup and view all the answers

Why might significant market failures in education and health require policy action according to the text?

<p>Market failures hinder investments in education and health areas (B)</p> Signup and view all the answers

What is suggested about the private returns to education compared to social returns?

<p>Private returns are generally higher than social returns, especially at higher educational levels. (A)</p> Signup and view all the answers

When will the rate of return on education be higher?

<p>When benefits are higher. (D)</p> Signup and view all the answers

What is included in the social rate of return on education?

<p>Public subsidy for the individual’s education is included as part of the investment from a social perspective. (C)</p> Signup and view all the answers

How many children were classified as 'child labor' in 2008?

<p>Over 96 million children. (D)</p> Signup and view all the answers

Where do most children engaged in 'hazardous work' reside?

<p>Asia and the Pacific region. (B)</p> Signup and view all the answers

What does the text say regarding an immediate ban on all forms of child labor?

<p>'Hazardous work' should be banned, but other forms can continue. (B)</p> Signup and view all the answers

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