Econ 3353 exam 2

An effective treatment of TB, requiring a six-month regimen, costs how much pre patient?

$10

True statements:

- Between 1950 and 1990, Asia's population more than doubled - Less than 10% of the Asian population is 65 years of age or older - East Asia has the lower population growth rates than South & Southeast Asia

True statements:

- Comprehensive wealth includes produced, natural and intangible capital - Turning natural capital into other forms of wealth is sustainable development - Intergenerational well-being declines if population grows faster than wealth

TRUE statements about agriculture in LDCs

- Engel's law contributes to labor transfers from agriculture - Technological change contributes to labor transfers from agriculture - The Green Revolution helped to boost agricultural productivity in Asia

Why do marketing boards persist?

- Farmers with larger landholding become beneficiaries of the MB surplus - Few LDC consumers want to join a political coalition that includes food prodcuers

What have economists learned from research on climate change?

- It's impact will be greater in low-income countries - It is difficult to solve because of the free-rider problem - The optimal response depends on the choice of discount rate

Which of the following statements about health in LDCs are accurate?

- Life expectancy has risen sharply in most LDCs - The main reason for the above, is reductions in infant and child mortality - Educating females helps to reduce the rate of infant and child mortality (All the above)

Why did the world lack a vaccine for malaria?

- The costs of discovering a vaccine were very high - The ability of potential customers in LDCs to pay was very limited - For a long time, there were no prizes from foundations for such a discovery (all the above)

How do Bates and Brock explain Africa's economic renaissance on the 1990s?

- The emergence of political competition in elections - Policy changes that strengthened incentives to use resources efficiently

Historically, birth rates fell as wages (and hence, incomes) rose. Which of the following could logically have happened?

- The income effect was negative (children are inferior good) - The income effect was positive (children are normal goods), but the substitution effect (due to higher opportunity cost of raising children) was stronger

Claims about investments in education in LDCs that are FALSE:

- The measured social rates of return are higher than private rates of return - Rates of return to education often rise as we move up the income categories

Which of the following characteristics are distinctive about agriculture?

- The poor spend a large share of their budgets on its products (50-70%) - Its producers deal with risks from both weather and price fluctuations (Both B and C) - (NOT RIGHT): It's share of GDP remains about the same over it --> wrong because it's gone down

True Claims about the returns to schooling:

- They are higher in poorer countries - They are higher than for alternative investment opportunities - They are higher for women than for men

Why are learning outcomes so poor in many countries?

- Too many unqualified teachers - High absentee rates among students and teachers - Too few books and other teaching materials (All of the above)

A positive relationship between average earnings and average years of schooling

- holds for men and women - holds in fast growing economies and stagnant ones - holds across income levels and regions (All of the above)

The majority of Sierra Leone lack access to what two essentials?

- no access to clean water - no improved saniation

What milestone did the world's population reach around 1820?

1 Billion

the world is missing how many women, according to Amartya Sen?

100 million

Life expectancy in Sierra Leone is about what it was in the United States in what year?

1900

At what population growth rate did LDCs peak in the 1960s?

2.5%

Are the low completion rates for primary school in low-income countries due more to a lack of household demand or a lack of school supply, according to research findings?

A lack of household demand

What are the two things you should bring to China if you visit?

A mask and toilet paper

The Malthus model of population and development incorporates

A negative relationship between real income and the death rate

What continent is particularly at risk if global warming continues?

Africa

Which region lagged far behind other developing regions in adopting modern crop varieties (MVs)?

Africa

In what region are Gini coefficients for land ownership low?

Africa; while South American countries are rather high

Give an example of the opportunity cost (not direct costs) of sending a child to school for households in developing countries

Any forgone earnings for the family or not being able to be at home helping out

Which of the following statements is false

Aside from Japan, no Asian country is at stage 4 of the demographic transition

What "preventative check" did Malthus recognize in later years?

Birth control

Farmers and traders in Africa were able to obtain knowledge about market prices, wages, and weather much more cheaply with the spread of what?

Cell phones

Which country overtook the US as the leading source of carbon dioxide emissions?

China

According to the research by Michael Kremer, what could be done to improve school attendance?

Conditional cash transfers is the big one. Others are financial benefits such as free uniforms or large classes for lower fees

Secure land rights can raise agricultural productivity by creating access to what?

Credit markets --> which farmers can purchase improved inputs - insecure land rights however, can undermine producers' incentives and limit productivity

When a country begins to experience economic development due to rising incomes....

Death rates will fall first

What region has a far higher boy/girl ratio (121/100) than elsewhere in the world? What mechanism is the likely cause for such a high ratio

East Asia; Sex-Selective abortion

The rate of adjusted net saving (the change in comprehensive net wealth) is increasing in

East and South Asia

What is a powerful and effective mechanism for promoting efficient resource use, reducing environmental degradation, and generating sustainable economic development?

Efficient Markets

(T or F) As T. Shultz anticipated, the convergence in schooling levels between rich and poor countries in recent decades has led to a convergence in per capita incomes

False

(T or F) Developing countries at all income levels have made substantial progress in raising enrollment ratios, but primary school completion is still a problem, particularly in the poorest income quintile

False

(T or F) In 2010, one-forth of the population 15 and over in the developing world had never attended school

False - 38% --> closer to one-third

(T or F) Poverty is the main reason for failure to use ORT (oral rehydration therapy) and insecticide-treated bed nets

False ---> Poverty alone is an unlikely explanation for the failure to use ORT. Instead, in western India, mothers may not believe that ORT works and prefer that health workers give their children an antibiotic

(T or F) about half of HIV-positive people in Sub-Saharan Africa do not know that they are infected

False --> as many as 9/10

(T or F) On average, carbon emissions per capita in developing countries have been one-tenth the level produced in the developed countries

False --> it's one-third

(T or F) between 1975 and 2005, there were big increases in secondary school enrollment in all regions except Latin America

False -->Expect Europe and Central Asia

Which of the following statements about agriculture is LDCs is false?

Grain yields have been rising in all income categories in all world regions

What has reduced life expectancy in parts of southern Africa by a decade or more?

HIV/AIDS

Which prominent infectious disease is the world's leading cause of death among adults age 15 to 59?

HIV/AIDS --> killed an estimated 25 million people

What activities have been the two leading contributors to global climate change?

Hydrological systems and Biological systems

What country is on track to replace China as the world's most populated country?

India

What disease claims the lives of 2,000 children everyday, with an especially high incidence rate among the poorest 20-percent of the world's population?

Malaria

The median ages of death in Denmark and Sierra Leone differ by

More than 70 years

Which of the following statements is false?

Natural capital makes up the largest category of wealth at all income levels --> false because it's Intangible goods

Is the world's population likely to double in your lifetime?

No

Up to the time of Malthus, what tended to expand in response to economic gain?

Population

Which of the following claims about investments in education in LDCs is accurate?

Primary education yields higher returns than secondary of higher education

Which is a more important determinant of health: the level of affluence or the spread of scientific knowledge?

Scientific Knowledge

When death rates are failing more quickly than birth rates, the country is in what stage of the demographic transition?

Stage 2

If birth rates are falling faster than death rates, and the population growth rate is slowing, the country is in what stage of the demographic transition?

Stage 3

In 2009, what world region had the most rapid rate of natural increase in the population?

Sub-Saharan Africa

In what world region do famines still occur regularly?

Sub-Saharan Africa

What two effects of rising wages did Gary Becker identify? Which of these two effects must be stronger?

Substitution and income effect; Substitution must be stronger

In Esther Duflo's experiment with one-room schools in India, what pay scheme reduced the teacher absence rate and improved student performance?

Teacher pay was a function of the number of valid days they worked based on the photographs submitted

What is "the biggest market failure the world has ever seen", according to the economist Nicholas Stern?

The emission of green house gases into the atmosphere

Which socioeconomic group is the most vulnerable to global climate change?

The poor

Which of the following is true of measured rates of return to education investments?

They are greater for private individuals than for society

Which of the following claims about returns to schooling is false?

They are highest at the secondary schooling level

(T or F) If the green revolution had not occurred, 32-42 million more preschool children would have been malnourished

True

(T or F) In 1960, more than half the population, age 15 and over in the developing world had never attended school

True

(T or F) In Sub-Saharan Africa, HIV epidemics are stable or declining

True

(T or F) In a nationwide study of primary schools in India, the absentee rate for teachers was one-forth

True

(T or F) In sub-Saharan Africa, South Asia, and East Asia, the rural poor vastly outnumbers the urban poor

True

(T or F) Latin America has almost achieved gender parity in schooling, but South Asia has a long way to go

True

(T or F) Nigeria's use of oil reserves is a prime example of unsustainable development

True

(T or F) Serious market failures - externalities, public goods, information issues, ect,. - arise in the control of infectious diseases

True

(T or F) Women and children account for more than half of the people living with HIV

True

(T or F) from 1960, to 2008, life expectancy in low- and middle-income countries increased by more than 50 percent

True

(T or F) on average, agricultural growth reduces poverty more effectively than industrial growth

True

(T or F) over the past 40 years, the total fertility rate has fallen by half or more in East and South Asia, Latin America, and the middle east

True

(T or F) the gap in schooling between women and men was less than 15% in 2010, substantially smaller than the corresponding figure in 1960

True

(T or F) Average cereal yields in East Asia are four times higher than in sub-Saharan Africa

True (although it might be "more than 4 times higher")

According to Robert Bates, whats a reason why marketing boards endured in Africa?

Urban consumers benefitted from MB policies, so they supported the policies

From the perspective of human capital theory....

You should compare the costs and benefits of education in present value terms

For the world, what was the average life expectancy at birth until 1800?

around 30 years

Life expectancies have risen sharply in LDCs, primarily because

basic health investments have reduced infant and child mortality

In the Malthus theory of population and devlopment...

income and birth rates are positively related

Across nearly 3,000 primary schools in India, how many head teachers (principals) had ever dismissed a teacher for repeated absences?

one

Agricultural growth reduces poverty much more effectively where

production techniques are more labor-intensive

Malaria is prevalent in tropical countries,

reducing economic growth rates by 1% or more per year in some countries

The effects of marketing boars in LDCs include...

reductions the both food output and food exports

Due to external costs, open-access resources (eg: ocean fishing) are often

underpriced