Income, Nutrition, and Consumption Choices

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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?

Low-income countries Signup and view all the answers

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

Smallpox had a significant impact on child mortality before 1950. Signup and view all the answers

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

Child mortality has decreased over time in all income categories. Signup and view all the answers

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

Lower discount rate Signup and view all the answers

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

Asia and the Pacific Signup and view all the answers

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

Public subsidy for education Signup and view all the answers

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

Economic benefits for children Signup and view all the answers

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

5-11 years Signup and view all the answers

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

Sub-Saharan Africa Signup and view all the answers

What is human capital?

Productive investments embodied in human persons Signup and view all the answers

How does greater health capital affect investments in education?

It improves the returns on education investments 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?

Higher income enables more spending on health and education Signup and view all the answers

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

Basic hygiene and sanitation are taught in schools Signup and view all the answers

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

A longer life raises the rate of return to education Signup and view all the answers

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

Greater health capital may improve the returns on investments in education Signup and view all the answers

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

It can range from near zero to about 0.5. 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?

Because children's nutrition is not directly correlated with their parents' income. Signup and view all the answers

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

Initial investments lead to a stream of higher future income. Signup and view all the answers

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

Better-educated mothers tend to have healthier children at any income level. Signup and view all the answers

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

Household consumption choices may lead to a surprisingly small link between income and nutrition for children. Signup and view all the answers

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

Addressing market failures requires immediate policy action. Signup and view all the answers