Income, Nutrition, and Consumption Choices

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Questions and Answers

Which of the following statements is true regarding the role of education in economic development?

  • Education is not important for the absorption of modern technology.
  • Education has no impact on productivity levels.
  • Education plays a minor role in a country's ability to grow and develop.
  • Education is a key component in developing a country's capacity for self-sustaining growth. (correct)

How have child mortality rates changed over time according to the text?

  • Child mortality rates remained the same across all income categories.
  • Child mortality rates decreased significantly in all income categories from 1950 to 2008. (correct)
  • Child mortality rates decreased in high-income countries but increased in low-income countries.
  • Child mortality rates increased in middle-income countries but decreased in low-income countries.

Why is health described as a prerequisite for productivity according to the text?

  • Productivity levels are unaffected by the health of the population.
  • Healthy individuals are not necessarily more productive than unhealthy ones.
  • Healthier individuals tend to have higher productivity levels. (correct)
  • There is no relationship between health and productivity.

In which region did children have the highest mortality rate in 1950?

<p>Low-income countries (B)</p> Signup and view all the answers

What is the significance of smallpox in relation to child mortality according to the text?

<p>Smallpox had a significant impact on child mortality before 1950. (B)</p> Signup and view all the answers

How has child mortality changed over time from low-income to high-income countries?

<p>Child mortality has decreased over time in all income categories. (A)</p> Signup and view all the answers

What is a key factor that can make the rate of return on education higher?

<p>Lower discount rate (B)</p> Signup and view all the answers

In which region do over 48 million children involved in hazardous child labor live?

<p>Asia and the Pacific (C)</p> Signup and view all the answers

What is considered part of the direct costs of education from a social point of view?

<p>Public subsidy for education (D)</p> Signup and view all the answers

What is mentioned as a reason for not immediately banning all forms of child labor?

<p>Economic benefits for children (D)</p> Signup and view all the answers

Which age group has over 96 million child laborers according to the text?

<p>5-11 years (D)</p> Signup and view all the answers

Where do nearly 39 million children involved in hazardous child labor live?

<p>Sub-Saharan Africa (D)</p> Signup and view all the answers

What is human capital?

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

How does greater health capital affect investments in education?

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

What is one reason provided in the text to explain why increasing incomes alone is not sufficient to improve health and education levels?

<p>Higher income enables more spending on health and education (B)</p> Signup and view all the answers

How does the text suggest that public health programs and education are interconnected?

<p>Basic hygiene and sanitation are taught in schools (D)</p> Signup and view all the answers

What role does a longer life play in relation to education according to the text?

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

Why does the text emphasize the joint investments in education and health for development?

<p>Greater health capital may improve the returns on investments in education (B)</p> Signup and view all the answers

What does the text suggest about the income elasticity of the demand for calories among low-income people?

<p>It can range from near zero to about 0.5. (A)</p> Signup and view all the answers

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

<p>Because children's nutrition is not directly correlated with their parents' income. (A)</p> Signup and view all the answers

What is the relationship between initial investments in health or education and future income?

<p>Initial investments lead to a stream of higher future income. (C)</p> Signup and view all the answers

What does the text imply about the effect of better-educated mothers on the health of their children?

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

What is suggested in the text regarding the link between household consumption choices, income, and nutrition for children?

<p>Household consumption choices may lead to a surprisingly small link between income and nutrition for children. (A)</p> Signup and view all the answers

What does the text recommend regarding addressing market failures in education and health?

<p>Addressing market failures requires immediate policy action. (C)</p> Signup and view all the answers

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