Population
What are the three factors that influence the rate of population growth?
Differentiate between absolute poverty and relative poverty.
Absolute poverty or extreme poverty is when people cannot fulfill the most basic needs necessary for survival.
Relative poverty is when a person cannot sustain the same standard of living as others in the same society.
Indicators are used to assess progress in the ___________ of a country.
living standards
Which of the following does not indicate improvements in economic development?
a) An increase in adult illiteracy
b) An increase in output per capita
c) Improvements in living standards
d) Increases in income per capita
a) An increase in adult illiteracy
What is net migration?
The difference between the number of people entering and leaving a country during the year per 1000 people.
List at least 3 causes of poverty.
1) Low wages
2) Illness
3) Age
4) Unemployment
5) Population growth
6) Poor infrastructure
7) Dependence on commodity exports
8) Lack of FDI
9) High public debt
In addition to GDP per head, which measures are included in the Human Development Index?
Life expectancy at birth and expected years of schooling
What are the 3 key dimensions of human development, as stated by the Human Development Index?
Which of the following will likely cause the birth rate to decrease?
a) A decrease in the death rate.
b) An increase in the fertility rate.
c) A government policy to provide free childcare.
d) An increase in the infant mortality rate.
a) A decrease in the death rate.
Which of the following indicators best measures absolute poverty in a country?
a) Unemployment rate
b) Real GDP
c) Consumer Price Index (CPI)
d) Gross National Income (GNI) per head
d) Gross National Income (GNI) per head
A country has a high real GDP per head.
Which statement about this country is most likely false?
a) The average person can have a decent income.
b) This could be a small or a large country.
c) Income is distributed evenly within the country.
d) Infrastructure is developed.
c) Income is distributed evenly within the country.
A more developed country has a higher proportion of population over the age of 65 while the total population has not changed much over the years.
Which will be most likely to result from this?
a) The overall savings rate increases
b) The demand for medical care increases
c) Relative poverty becomes more of a problem
d) Personal income tax revenue increases
b) The demand for medical care increases
What factors influence the birth rate in a country? (Hint: There are 5.)
1) The number of women in the population
2) The fertility rate (the average number of children per woman)
3) Contraception
4) Female employment
5) Customs and religion
List at least 2 different ways to alleviate poverty.
1) Sustainable Development Goals
2) Reducing unemployment
3) Progressive taxation
4) Providing state benefits
5) Improving education
6) Introducing or increasing the minimum wage
Why is real GDP per head a better measure of growth and living standards than GDP alone?
It takes into account changes in the population. Real GDP per head shows us the level of output in comparison to population. GDP may increase, but the population may also increase. This means less goods were actually produced per person that year.
Real GDP per head indicates how much income is earned per person, which gives a better indication of living standards.
Rural populations in developing countries often wish to migrate to the towns for better job opportunities and hence higher income.
What is the most likely consequence of this phenomenon?
a) Businesses in towns face a higher production cost
b) An increase in the bargaining power of labour unions
c) Overpopulation in the towns
d) Lower economic growth in the towns
c) Overpopulation in the towns
Explain two reasons why different countries may have different rates of population growth.
1) The birth rate - Birth rates tend to be high in countries where the fertility rate is high, the infant mortality rate is high, and women are less educated and so tend to marry young.
2) The death rate - A country is likely to have a relatively low death rate if the majority of people have a healthy diet, regular exercise, proper sanitation, good housing facilities, access to good-quality healthcare and education, and good working conditions.
3) Net Migration - People leave (emigrate from) their home countries for many different reasons, such as better job opportunities, a better lifestyle, warmer climates, lower taxes or to seek refuge from conflict.
Is the following statement true or false?
Governments can reduce poverty by increasing taxes and interest rates.
False - Increasing taxes and interest rates will reduce consumer spending and investment expenditure in the economy. In the long run this reduces total demand in the economy, as consumers will have less disposable income due to increases in taxes. Businesses will have less incentive to expand due to increases in the cost of borrowing. This will increase unemployment, which will increase poverty.
List at least two factors that contribute to the variation of living standards and income distribution between countries.
1) Investment in infrastructure
2) Distribution of income within a household
3) The general price level
4) Education
5) Healthcare
6) Wealth
List at least 3 factors that cause different rates of economic development between countries.
1) Differences in income
2) Productivity
3) Population growth
4) Size of the primary, secondary, and tertiary sectors
5) Differences in savings and investment
6) Education and healthcare