Question 1

What are factor price distortions,and what are their major causes in developing countries?

Accepted Answer

Factors of production are paid prices that do not reflect the prices that would prevail under a true competitive market,that is,their scarcity prices.Prices for capital and intermediate goods are often artificially low because of tax rebates,investment subsidies,high capital depreciation allowances,ceilings on interest rates etc.Wages are often above opportunity costs due to trade union,political,and other pressures.

Question 2

Which of the following groups is(are)more likely to be poor?

Accepted Answer

A) minorities 
B) indigenous people 
C) women 
D) all of the above. 
A) minorities 
B) indigenous people 
C) women 
D) all of the above. D

Question 3

What is the Multidimensional Poverty Index and how is it a more improved measure of poverty?

Accepted Answer

The MPI identifies the poor at the household level and uses the dual cutoff method.First,the cutoff levels within each of the dimensions and second,the cutoff of the number of dimensions in which a person must be deprived to be deemed multidimensionally poor.This is a better indicator of poverty and it goes beyond income and looks at other weighted indicators (health,education,and standard of living)for which poor households are deprived.

Question 4

Which of the following policies may decrease the level of capital intensity in industry?

Accepted Answer

A) an increase in the cost of capital 
B) a decrease in the minimum wage 
C) an increase in the elasticity of substitution 
D) all of the above. 
A) an increase in the cost of capital 
B) a decrease in the minimum wage 
C) an increase in the elasticity of substitution 
D) all of the above.

Question 5

Discuss the benefits of using a "poverty weighted" index of GNP growth as a measure of social welfare as opposed to using the growth in GNP to measure change in social welfare.

Accepted Answer

Students should refer specific

Question 6

What are the characteristics of the poor (be specific)?

Accepted Answer

A person is more likely to be absolutely

Question 7

Compare and contrast the similarities and the differences in the development experience of Ghana and Cote d'Ivoire.How did the economic development policies followed by the two countries differ?

Accepted Answer

The case study on Gh

Question 8

Increasing GNP is a necessary but not a sufficient condition for improving living standards in less developed countries.True or false,explain.

Accepted Answer

True.Growth in income is neces

Question 9

The Gini coefficient provides a measure of

Accepted Answer

A) the level of poverty. 
B) the level of relative inequality. 
C) disguised unemployment. 
D) the rate of growth. 
A) the level of poverty. 
B) the level of relative inequality. 
C) disguised unemployment. 
D) the rate of growth.

Question 10

Distribution of income according to percentiles,such as the highest 40% or lowest 20% is known as the _______________ distribution of income.

Accepted Answer

A) size 
B) functional 
C) GNP-weighted 
D) equal-weighted 
A) size 
B) functional 
C) GNP-weighted 
D) equal-weighted

Question 11

Why are about 100 million girls and women said to be "missing" in developing countries?

Accepted Answer

This is the number of females that would

Question 12

Explain why a Lorenz curve can never lie to the left or above the 45 degree line.

Accepted Answer

It is constructed by ordering

Question 13

Generally speaking,higher income countries tend to have less income inequality than low-income countries,however this does not always hold true.What could cause a low-income country to have low-income inequality?

Accepted Answer

Low inequality can r

Question 14

According to Kuznets,in the process of development inequality in an economy will normally

Accepted Answer

A) first rise and then fall. 
B) first fall and then rise. 
C) remain about the same. 
D) show no definite pattern. 
A) first rise and then fall. 
B) first fall and then rise. 
C) remain about the same. 
D) show no definite pattern.

Question 15

Poverty is better studied with size distribution measures than those based on factor distribution because

Accepted Answer

A) labor income may be highly concentrated in well-paid modern sector workers. 
B) some poor farmers may receive a sizable share of income in rent. 
C) income from nonmarket activities such as foraging may be important. 
D) all of the above. 
A) labor income may be highly concentrated in well-paid modern sector workers. 
B) some poor farmers may receive a sizable share of income in rent. 
C) income from nonmarket activities such as foraging may be important. 
D) all of the above.

Question 16

Discuss some policies or strategies that would give firms an incentive to substitute labor for capital within modern production techniques.

Accepted Answer

Depends on

Question 17

The Ahluwalia-Chenery welfare index

Accepted Answer

A) is a method used to measure changes in absolute poverty. 
B) shows the value judgment implications of using the change in income per capita as a measure of the change in development. 
C) is a method used to measure changes in inequality. 
D) is a method used to measure the growth rate of GDP. 
A) is a method used to measure changes in absolute poverty. 
B) shows the value judgment implications of using the change in income per capita as a measure of the change in development. 
C) is a method used to measure changes in inequality. 
D) is a method used to measure the growth rate of GDP.

Question 18

What is a Lorenz curve? Draw one,labeling the axes.

Accepted Answer

Examined i

Question 19

Developing countries who have adopted capital-intensive technologies tend to have

Accepted Answer

A) relatively higher Gini coefficients. 
B) relatively lower Gini coefficients. 
C) Gini coefficients equal to one. 
D) Gini coefficients equal to zero. 
A) relatively higher Gini coefficients. 
B) relatively lower Gini coefficients. 
C) Gini coefficients equal to one. 
D) Gini coefficients equal to zero.

Question 20

Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404,it is possible to conclude that both Egypt and Australia have

Accepted Answer

A) virtually the same number of households in absolute poverty. 
B) virtually the same percentage of households in absolute poverty. 
C) virtually the same level of the Human Development Index. 
D) none of the above. 
A) virtually the same number of households in absolute poverty. 
B) virtually the same percentage of households in absolute poverty. 
C) virtually the same level of the Human Development Index. 
D) none of the above.

What are factor price distortions,and what are their major causes in developing countries?

Which of the following groups is(are)more likely to be poor?

What is the Multidimensional Poverty Index and how is it a more improved measure of poverty?

Which of the following policies may decrease the level of capital intensity in industry?

Discuss the benefits of using a "poverty weighted" index of GNP growth as a measure of social welfare as opposed to using the growth in GNP to measure change in social welfare.

What are the characteristics of the poor (be specific)?

Compare and contrast the similarities and the differences in the development experience of Ghana and Cote d'Ivoire.How did the economic development policies followed by the two countries differ?

Increasing GNP is a necessary but not a sufficient condition for improving living standards in less developed countries.True or false,explain.

The Gini coefficient provides a measure of

Distribution of income according to percentiles,such as the highest 40% or lowest 20% is known as the _______________ distribution of income.

Why are about 100 million girls and women said to be "missing" in developing countries?

Explain why a Lorenz curve can never lie to the left or above the 45 degree line.

Generally speaking,higher income countries tend to have less income inequality than low-income countries,however this does not always hold true.What could cause a low-income country to have low-income inequality?

According to Kuznets,in the process of development inequality in an economy will normally

Poverty is better studied with size distribution measures than those based on factor distribution because

Discuss some policies or strategies that would give firms an incentive to substitute labor for capital within modern production techniques.

The Ahluwalia-Chenery welfare index

What is a Lorenz curve? Draw one,labeling the axes.

Developing countries who have adopted capital-intensive technologies tend to have

Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404,it is possible to conclude that both Egypt and Australia have

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

International Trade Theory and Development Strategy

Balance of Payments,debt,financial Crises,and Stabilization Policies

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Finance and Fiscal Policy for Development

Filters

Exam 5: Poverty,inequality,and Development

What are factor price distortions,and what are their major causes in developing countries?

Which of the following groups is(are)more likely to be poor?

What is the Multidimensional Poverty Index and how is it a more improved measure of poverty?

Which of the following policies may decrease the level of capital intensity in industry?

Discuss the benefits of using a "poverty weighted" index of GNP growth as a measure of social welfare as opposed to using the growth in GNP to measure change in social welfare.

What are the characteristics of the poor (be specific)?

Compare and contrast the similarities and the differences in the development experience of Ghana and Cote d'Ivoire.How did the economic development policies followed by the two countries differ?

Increasing GNP is a necessary but not a sufficient condition for improving living standards in less developed countries.True or false,explain.

The Gini coefficient provides a measure of

Distribution of income according to percentiles,such as the highest 40% or lowest 20% is known as the _______________ distribution of income.

Why are about 100 million girls and women said to be "missing" in developing countries?

Explain why a Lorenz curve can never lie to the left or above the 45 degree line.

Generally speaking,higher income countries tend to have less income inequality than low-income countries,however this does not always hold true.What could cause a low-income country to have low-income inequality?

According to Kuznets,in the process of development inequality in an economy will normally

Poverty is better studied with size distribution measures than those based on factor distribution because

Discuss some policies or strategies that would give firms an incentive to substitute labor for capital within modern production techniques.

The Ahluwalia-Chenery welfare index

What is a Lorenz curve? Draw one,labeling the axes.

Developing countries who have adopted capital-intensive technologies tend to have

Assuming that the Gini coefficient for Egypt is 0.403 and the Gini coefficient for Australia is 0.404,it is possible to conclude that both Egypt and Australia have

Introducing Economic Development: a Global Perspective

Comparative Economic Development

Classic Theories of Economic Growth and Development

Contemporary Models of Development and Underdevelopment

Population Growth and Economic Development: Causes,consequences,and Controversies

Urbanization and Rural-Urban Migration: Theory and Policy

Human Capital: Education and Health in Economic Development

Agricultural Transformation and Rural Development

The Environment and Development

Development Policymaking and the Roles of Market,state,and Civil Society

International Trade Theory and Development Strategy

Balance of Payments,debt,financial Crises,and Stabilization Policies

Foreign Finance,investment,aid,and Conflict: Controversies and Opportunities

Finance and Fiscal Policy for Development

Filters