Poverty and Development Quiz

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Questions and Answers

What does a higher Gini coefficient indicate?

  • Greater equality
  • Greater inequality (correct)
  • Higher economic growth
  • Greater poverty

How is the Average Poverty Gap (APG) calculated?

  • APG = TPG + N
  • APG = TPG / N (correct)
  • APG = TPG * N
  • APG = N / TPG

Which of the following is NOT a dimension of the Multidimensional Poverty Index (MPI)?

  • Education
  • Living standards
  • Health
  • Environmental stability (correct)

What is required for someone to be classified as multidimensionally poor?

<p>Deprivation in at least one third of the dimensions (D)</p> Signup and view all the answers

Which of the following best defines poverty?

<p>A pronounced deprivation in well-being (D)</p> Signup and view all the answers

What does the Average Income Shortfall (AIS) measure?

<p>Extent to which poor persons fall below the poverty line (C)</p> Signup and view all the answers

Which of the following factors does NOT contribute to poverty measurements?

<p>Access to luxury goods (B)</p> Signup and view all the answers

Which statement about the Lorenz curve is true?

<p>The 45-degree line represents perfect equality (D)</p> Signup and view all the answers

What primarily contributes to the decline in mortality rates in developing countries?

<p>Improved sanitation measures (B)</p> Signup and view all the answers

What characterizes the age structure in developing countries?

<p>A relatively youthful population (A)</p> Signup and view all the answers

According to Thomas Malthus, what is the relationship between population growth and resource availability?

<p>Limited resources mean higher population growth is unsustainable (B)</p> Signup and view all the answers

What is a potential consequence of a high youth dependency ratio in developing countries?

<p>Reduction in workforce productivity (D)</p> Signup and view all the answers

What phenomenon marks the demographic transition in a population?

<p>A rise and then fall of the working-age population fraction (D)</p> Signup and view all the answers

What has been a significant impact of the transition from high birth and death rates?

<p>Rapid growth of world population due to lower death rates (D)</p> Signup and view all the answers

Why do developing countries face a potential crisis regarding their growing workforce?

<p>High levels of unemployment leading to inequality (C)</p> Signup and view all the answers

What did Thomas Malthus predict about food supply in relation to population growth?

<p>Food production would not keep pace with population growth (B)</p> Signup and view all the answers

What factor is suggested to improve outcomes for women in societies with son preference?

<p>Increased opportunities for women in the labor market (C)</p> Signup and view all the answers

Which of the following is NOT listed as a dimension in which women in developing countries are worse off?

<p>Access to advanced technology (B)</p> Signup and view all the answers

How does health capital directly affect education?

<p>Healthier students learn more effectively (D)</p> Signup and view all the answers

Which of the following is true regarding the investment in children's education and health?

<p>Income increase does not guarantee improvements in children's education (B)</p> Signup and view all the answers

What is a defining characteristic of child labor as per the international labor organization?

<p>Work that is morally harmful and impedes schooling (A)</p> Signup and view all the answers

In what ways can the preference for sons be mitigated, according to the provided content?

<p>By improving opportunities and aspirations for women (C)</p> Signup and view all the answers

Which of the following illustrates the relationship between health and education?

<p>Healthier individuals usually have lower educational depreciation (C)</p> Signup and view all the answers

What is suggested regarding girls' education when parents learn about economic returns?

<p>Parents invest more in girls, leading to better outcomes (D)</p> Signup and view all the answers

What is an example of a market failure in education and health mentioned?

<p>Uneducated mothers have healthier children (A)</p> Signup and view all the answers

How do direct and indirect costs relate to education?

<p>Direct costs include tuition, while indirect costs include forgone income from not working (A)</p> Signup and view all the answers

What is the primary goal of health care policies in poor countries?

<p>Regulate the quality of treatment (A)</p> Signup and view all the answers

What is a significant barrier faced by poor individuals regarding health education?

<p>Difficulties in accessing health information (C)</p> Signup and view all the answers

Which factor primarily contributes to global warming as described in the content?

<p>Fossil fuel burning (D)</p> Signup and view all the answers

Which strategy is NOT mentioned as a solution for climate change mitigation?

<p>Increase meat consumption (A)</p> Signup and view all the answers

What is the difference between mitigation and adaptation in the context of climate change?

<p>Mitigation focuses on reducing emissions, while adaptation deals with adjusting to climate effects. (A)</p> Signup and view all the answers

What is a major source of emissions identified in developing countries?

<p>Coal plants and automobiles (C)</p> Signup and view all the answers

Which approach is highlighted for mitigating climate change?

<p>Phasing out fossil fuels (B)</p> Signup and view all the answers

What adaptation policy can help prevent disasters in vulnerable communities?

<p>Implementing early warning systems (A)</p> Signup and view all the answers

What is one of the primary economic motivations for families to have fewer children?

<p>Higher cost of child-rearing (B)</p> Signup and view all the answers

Which factor is associated with a decrease in fertility rates according to microeconomic theory?

<p>Higher female education (D)</p> Signup and view all the answers

How does access to contraceptives influence fertility rates?

<p>The manner of providing contraceptives matters (B)</p> Signup and view all the answers

What role does female autonomy play in fertility decisions?

<p>It decreases the likelihood of unwanted pregnancies (C)</p> Signup and view all the answers

In Zambia, how did the provision of free contraceptive vouchers affect women's behavior?

<p>Women were more likely to visit healthcare providers (B)</p> Signup and view all the answers

What societal factors can influence fertility decisions?

<p>Social norms and media representation (D)</p> Signup and view all the answers

Which of the following is NOT a factor that increases the demand for fewer children?

<p>Decrease in employment opportunities for women (D)</p> Signup and view all the answers

What is a characteristic of children in developing countries as described in the economic framework?

<p>First children are viewed as 'consumer goods' (C)</p> Signup and view all the answers

What is one of the potential benefits parents expect from having more children?

<p>Expected income from child labor (B)</p> Signup and view all the answers

Which of the following is likely to discourage large families according to empirical studies?

<p>Increased female education and employment (D)</p> Signup and view all the answers

What is a primary cause of the tragedy of the commons?

<p>The conflicting interests of private and social incentives (A)</p> Signup and view all the answers

Which of the following is a characteristic of public goods?

<p>They provide benefits to everyone (C)</p> Signup and view all the answers

What is the recommended solution to reduce pollution from common resources?

<p>Implementation of corrective taxes or regulations (C)</p> Signup and view all the answers

What design principle proposed by Elinor Ostrom involves monitoring resource usage?

<p>Monitoring with accountability to users (A)</p> Signup and view all the answers

Which policy option is most beneficial for improving resource management in both developed and developing countries?

<p>Improved economic alternatives for the poor (B)</p> Signup and view all the answers

Which negative externality is associated with congested roads?

<p>Environmental degradation from increased emissions (A)</p> Signup and view all the answers

What is one major impact of poor environmental conditions in urban slums?

<p>Higher rates of respiratory illnesses (D)</p> Signup and view all the answers

What is one way governments can address market failures related to the environment?

<p>Implement corrective taxes on resource use (D)</p> Signup and view all the answers

Which of the following is NOT considered a public bad?

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

What environmental issue is commonly linked to deforestation in developing countries?

<p>Higher rates of emissions due to land use changes (D)</p> Signup and view all the answers

Flashcards

Gini Coefficient

A measure of income inequality within a population. A higher Gini coefficient indicates greater inequality. It is calculated as the ratio of the area between the Lorenz curve and the line of perfect equality, to the area of the triangle under the line of perfect equality.

Lorenz Curve

A graphical representation of income distribution. It shows the cumulative percentage of income against the cumulative percentage of the population, ordered from lowest to highest income. The more bowed the Lorenz curve is, the greater the income inequality.

Poverty

The deprivation in well-being of individuals due to insufficient income or consumption to reach a basic standard of living.

Average Income Shortfall (AIS)

The average amount of income shortfall for the poor population in an economy. It represents the average distance each poor individual is from the poverty line.

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Multidimensional Poverty Index (MPI)

A measure of poverty that considers multiple dimensions beyond income, including education, health, and living standards.

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Average Poverty Gap (APG)

The average poverty gap in an economy. It represents the average distance each individual in the economy is from the poverty line.

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Global Multidimensional Poverty Index (MPI)

A multidimensional poverty index (MPI) used to measure global poverty. Specifically, it considers 3 dimensions (health, education, standard of living) and 10 indicators. Individuals are considered multidimensionally poor if they are deprived in at least one-third of the dimensions.

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Dual Cutoff Identification

A method of identifying multidimensionally poor individuals by setting cutoff levels within each dimension of deprivation and establishing a threshold for the number of dimensions in which a person must be deprived to be considered multidimensionally poor.

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Declining Mortality Rates

Improvements in medicine, nutrition, and sanitation have significantly reduced mortality rates, leading to longer lifespans.

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Population Growth Trends

The rapid increase in population, particularly in developing countries, is driven by a shift from high birth and death rates to lower death rates but still relatively high birth rates.

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Youth Dependency Burden

A high proportion of children in developing countries puts a significant strain on the workforce, as they need to support a larger number of dependents.

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Population Pyramids

Population pyramids illustrate the age structure of a population, showing how the proportion of different age groups changes over time.

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Demographic Transition

The process of a population transitioning from high birth and death rates to low birth and death rates, resulting in a changing age structure.

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Working-Age Population Growth

A growing working-age population can lead to economic growth or challenges, such as unemployment, depending on factors like job opportunities.

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Malthusian Theory

The theory that unchecked population growth leads to resource scarcity, which in turn limits economic growth and increases poverty.

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Malthus' Food Scarcity Argument

Malthus argued that the fixed amount of land for food production could not keep up with population growth, leading to food shortages and economic decline.

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Microeconomic Theory of Fertility

The theory proposes that families make conscious choices about the number of children they want based on economic factors.

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Costs of having children in the microeconomic theory

The costs include the lost income of the mother who is raising children, plus the expenses of educating them.

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Benefits of having children in the microeconomic theory

The benefits of children can include potential income from them working, and them providing financial support to their aging parents.

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Factors that decrease fertility according to the microeconomic theory

Families will have fewer children when the cost of raising them increases. Higher education and job opportunities for women are key examples.

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Fertility and Education

The theory suggests that women who receive more education are more likely to have fewer children.

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Impact of Female Employment on Fertility

The theory predicts lower fertility in areas with increased non-agricultural jobs for women at higher wages.

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Old-age security and fertility

The theory suggests that improved healthcare and social security programs can reduce concerns about having enough children to support aging parents.

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Fertility and Contraceptives

Contraceptives can decrease fertility by making family planning more accessible. However, how they are provided is crucial.

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Intra-household Fertility Decisions

In households, the decision to have more children is often a joint one, influenced by the couple and their social circles.

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Fertility Decisions and Preferences

Social norms, media, and even religion can influence a society's fertility rates. Seeing smaller families on TV, or observing a trend among peers, can encourage the adoption of contraceptives.

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Global Warming

The long-term heating of Earth's surface observed since the pre-industrial period (between 1850 and 1900) due to human activities, primarily fossil fuel burning, which increases heat-trapping greenhouse gas levels in Earth's atmosphere.

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Climate Change

Long-term change in the average weather patterns that have come to define Earth's local, regional, and global climates.

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Mitigation

Actions to reduce emissions that cause climate change.

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Adaptation

Actions taken to adapt to the effects of climate change, such as extreme weather events and rising sea levels.

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Mitigation Strategies

Strategies to reduce greenhouse gas emissions, such as taxes on carbon, caps on emissions, and subsidies for green technologies.

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Adaptation Policies

Strategies to adjust to the impacts of climate change, such as early warning systems, infrastructure improvements, and enhancing natural ecosystems.

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Prevention vs. Immediacy

A situation where the immediate benefits of prevention are not apparent, particularly for people living in poverty who may prioritize immediate needs over long-term consequences.

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Developing Countries' Role in Emissions

A problem where developing countries contribute significantly to greenhouse gas emissions, often due to rapid industrialization and economic growth.

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Son Preference

The belief that sons are more valuable than daughters, often leading to discrimination and unequal treatment of girls.

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Human Capital

Investments in a person's education, health, and other skills that increase their productivity and earning potential.

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Income Inequality and Human Capital

The idea that increasing incomes alone doesn't guarantee improvements in children's education and health.

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Child Labor

Work that is dangerous or harmful to children, or that prevents them from attending school.

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Private Returns to Education

The benefits that an individual receives from investing in their own education, such as higher earnings or job satisfaction.

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Social Returns to Education

The benefits that society as a whole receives from individuals getting an education, such as a more skilled workforce or lower crime rates.

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Private Returns Exceeding Social Returns

The situation where the private returns to education are higher than the social returns, often occurring at higher education levels.

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Education and Health as Joint Investments

The relationship between education and health, where improvements in one can lead to better returns on investments in the other.

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Capabilities Approach to Development

Amartya Sen's theory that development should focus on expanding people's capabilities, including their ability to live long and healthy lives and to access education.

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Disadvantage of Women in Developing Countries

Women in developing countries often face significant disadvantages in areas like poverty, education, health, and social rights.

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Tragedy of the Commons

A situation where individuals acting in their own self-interest deplete a shared resource, even when it's detrimental to the long-term well-being of the group.

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Externalities

Costs or benefits that affect parties not directly involved in a transaction, such as pollution from a factory affecting nearby residents.

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Public good

A good that is non-excludable (everyone can benefit) and non-rivalrous (one person's use doesn't reduce another's).

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Public bad

A good that is harmful or detrimental to everyone and its consumption can't be prevented.

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Corrective tax

A tax imposed on activities that generate negative externalities, aiming to internalize the external cost.

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Regulation

A government-imposed limit on the amount of a specific resource that can be used.

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Tradable permits

A system where the right to use a resource is bought and sold, allowing efficient allocation and reducing overuse.

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Overexploitation

A situation where individuals overuse a common resource because they don't bear the full cost of their actions.

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Carbon taxes

Taxes on fossil fuels aimed at reducing their consumption and promoting alternative energy sources.

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Caps on greenhouse gases

Government-imposed limits on the total amount of greenhouse gas emissions allowed.

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Study Notes

Introduction to Development

  • Movement up strata is often gradual, sometimes rapid and transformative, occurring during a single person's life.
  • Development is about improving well-being, broadly understood, not just income.
  • The New Economic View of Development emphasizes capabilities, focusing on the quality of life individuals can achieve, influenced by the UN development index.
  • Sen's capability approach stresses opportunities to use commodities for well-being, rather than just the commodities themselves.

Causality and Policy Evaluation

  • Impact: the causal effect of one factor on another.
  • Regression analysis explains variation in an outcome using explanatory variables.
  • A counterfactual is what would have happened without intervention, not directly observed.
  • The selection problem exists when treated are different from untreated, impacting accurate impact measurement. Differences must be controlled for in a regression

Economic development measures and growth

  • Traditional methods include GNI and GDP, using purchasing power parity to avoid exchange rate issues.
  • The World Bank classifies countries based on GNI per capita as low, lower-middle, upper-middle, or high-income.
  • GNI is the total value of goods and services produced by residents of a country. GDP is the national output produced within a country.

New Human Development Index (NHDI)

  • NHDI uses a geometric mean rather than an arithmetic mean to compute the index.
  • It considers health (life expectancy, school attainment), education (average and expected schooling), and income (GNI per capita PPP).

Poverty and Inequality

  • Extreme income inequality hinders efficiency (smaller savings rates, inefficient allocation of assets).
  • Inequality may cause instability and social conflict.
  • Income and expenditure measures are used to define poverty.

Multidimensional Poverty Index (MPI)

  • The MPI considers deprivations in health, education, and standard of living.
  • A person is identified as multidimensionally poor if they are deprived in at least one-third of the dimensions

Population and Fertility

  • Declines in mortality, improved nutrition, and spread of modern sanitation are factors behind population growth.
  • Demographic transition involves changes in birth and death rates.
  • Stages in this transition include high birth/high death rates, falling death rates, and then both rates stabilizing.
  • Population control policies are implemented in some countries.

Gender

  • Gender inequality persists in some countries.
  • Sex-selective abortion can impact sex ratios.
  • Societies' preferences and cultural norms affect whether girls or boys are valued in some regions.

Economic Value of Women

  • Women's economic roles, particularly in the workforce, are influenced by education, cultural and social factors.
  • Son preference is a driver of gender inequality; this is particularly true when people believe that investment in daughters doesn't offer an adequate return

Health and Education

  • Children's health impacts education outcomes (e.g., attendance, achievement).
  • Better health and education yield higher productivity in the economy.

Child Labor

  • Child labor is prevalent in many developing countries.
  • It is a major form of economic exploitation and also impacts opportunities for education

Environment and Development

  • Global warming and long-term heating of the Earth's surface is occurring; this is caused by increases in greenhouse gas levels.
  • Climate change impacts include fluctuations in average weather patterns.
  • Mitigation and adaptation strategies for dealing with the impacts of climate change are being explored and implemented.

Risk and Insurance

  • Informal insurance networks can protect against risk but are limited in scope and applicability

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