Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 35, Problem 1.1P
To determine
Role of
Expert Solution & Answer
Explanation of Solution
There are many people suffering a lot in the situation of extreme poverty. Growth by itself is not enough to improve their life conditions, because, economic growth mainly focus on the allocation of resources for the growth in real
When more resources are allocated to economic growth, poverty rates will decline at a particular level. However, after that point, further allocation of resources for the reduction in poverty would become more difficult and has only smaller impact on poverty reduction due to the presence of several problems of extreme poverty. The concept of increasing
Economics Concept Introduction
Concept introduction:
Extreme poverty: Extreme poverty is a situation where people lack basic human needs such as food, clothes, shelter, safe drinking water, sanitation facilities, health, education, and information.
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Students have asked these similar questions
In this chapter Wheelan also discusses the role of developed economies in alleviating (reducing) poverty in less developed economies. To this purpose, he draws from works of development economists such as William Easterly, Jeffrey Sachs, and others. Of the statements listed below which would Wheelan and the other quoted authors NOT AGREE to be effective or well-directed economic development strategies to alleviate global poverty?
Group of answer choices
Most of the difference between the huge success of East Asia and the relatively poor performance of South Asia, sub-Saharan Africa, and Latin America can be explained by the differences in their government policies.
Traditional aid projects to the less developed economies have been inflexible and ineffective.
Impoverished nations are caught in a poverty trap, and only capital from developed nations will rescue them.
The primary stumbling block to development in poor countries has been the bad advice they received from the rich…
At the beginning of the year, one developing country (DVC) has a real income per capita of $1,000. In a developed country (IAC), the real income per capita is $30,000. Both countries experience a 4 percent growth rate for the year. At the end of the year, the absolute income gap between these two countries will have increased from $29,000 to
$30,160.
$31,200.
$30,120.
$32,240.
Using the growth rates for countries over the past 20 years, as shown in the figure below, is there evidence that poorer countries in
Africa and Asia are converging to the level of income found in Western Europe?
Regional growth rates, 1980-2018 The graph shows that while developed countries averaged growth rates of about 2 percent,
developing countries in Asia grew much faster. Starting in about 2000, countries in sub-Saharan Africa also grew at a high rate.
Real GDP growth rate (percent)
11
9
7
Emerging and developing Asla
Sub-Saharan Africa (Region)
Advanced economies
5
3
1
-1
-3
-5
1980 1983
1986 1989 1992 1995 1998
2001 2004 2007 2010
2013 2016
2019
Source: IMF World Economic Outook, October 2018, www.imf.org/external/datamapper/NGDP RPCH@WEO/OEMDC/ADVEC/WEOWORLD.
○ Yes, the map shows that over the past 20 years countries in Western Europe have grown faster than countries in Africa and
Asia.
○ Yes, the map shows that over the past 20 years countries in Africa and Asia have grown…
Chapter 35 Solutions
Principles of Economics (12th Edition)
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