exam 2 questions
If demand for a good goes down when income goes up, this is an example of an _____ _______.
Inferior good
How does the average income of the richest country compare to the poorest using the purchaging power parity comparision method?
Buruni's GNP per capita is $230. US is the wealthiest country with GNP per capita of $45,850. Norway's GNP per capita is $53,690. The average income of the richest country is 230 times greater then that of the poorest.
a change in several factors can cause the supply curve to shift. NAme one of them
technology, change in input prices, demand of related goods, weather, insects, disease
How is the world's income distribute among the world's population? (4 part question)
The richest 1/5th of the world's population receives 82.7% of total world income. The poorest 5th 1.4% of the total worth income. The richest 2/5 gets 94.4%. Everyone else gets 5.6%.
what are the problems associated with a high population density?
the demographic trap aren't able to produce enough food to feed the population
how do the fertility rates in developing countries compare to those in developed countries such as europe?
they are much higher, 2+ for developing
what will happen to the population levels and growth rates in the future?
they will level off because the carrying capacity of earth will be reached
an income elasticity of demand for eggs in brazil of 1.93 tells us that if income goes up by 1% then demand for eggs in brazil goes ____ by ___%
up 1.93
what is one thing we can learn from a graph showing the the reutlinger triangles?
we can take food away from the rich and give it to the poor and make both groups better off nutritionwise
what are the causes of unequal distribution?
ability, wealth inheritance, individual choice, discrimination human capital, life cycle, family background, stochastic, segmented labor market
explain why a producer would want to continue increasing output as long as average product is increassing.
adding inputs increases the average productivity of every input
what important development caused population to rapidly increase about 10,000 years ago?
agriculture, people stopped moving around
how might higher incomes lead to lower fertility
as people become better off they chose to have fewer children
how do we calculate the total amount of a product that will be supplied in any given market?
at any given level of a price go over the supply curve and then drop down to the quantity axis and that is the level of supply
which are the most populous and the fastest growing countires?
china and india
an increase in the supply of a food with an inelastic own price elasticity of demand results in _________ in total revenue received by farmers.
decrease
what causes birthrates to decline?
economic prosperity, education
what can be done to lower the population growth rates?
educate people and birth control
How is economic growth in the country measured? (3)
gross domestic product gross national income gross national product
what have been some of the causes of declining death rates?
health care, nutrition
what causes a rapid population growth rate?
high birth rates, low death rates
what is the relationship between income and fertility?
higher income means lower fertility
list three factors that can change the position of the demand curve.
income, tastes and preferences, related product prices (complements and substitutes), population
what are the reasons for decling death rates?
increasing health care opprotunities, nutrition
when supply for a product shifts out, what happens to the market equilibrium price?
it decreases
What happens to the price of food if food production fails to keep pace with increases in demand?
it increases
why might a high population denisty be a problem?
it makes it harder to produce enough food to feed the population
How might income redistribution impact the reutlinger triangles?
poorer people could afford to consume more food and the wealthier people consume less food
what were malthus's predictions concerning population growth and the rate of increase in food production?
population grows exponentially, food production arithmetically
what will happen if the current population reduces the fertility rate to replacement levels?
population will continue to grow for a while and then level off. population replacement level is 2.1
why do people in ldcs have children?
pride, to help with producing food
How does the average income of the richest country compare to the poorest using the exchange rate comparison method?
The poorest country is Burundi with GNP per capita= $110. The US has a gnp per capita rate of $46,060. Norway is the wealthiest country with GNP per capita of $76,450. The average income of the richest country is 700 times greater then that of the poorest.
what are some economic disincentives for childbearing?
taxes on children, higher hospital delivery fees for higher order births, subsidized housing available only for families with less than three children
What are the 2 methods to compare the rich to the poor?
Exchange rate comparison and the Purchasing power parity comparison