Pointers in EconDev 13.

Lorenz Curve
I. True or False (15 points) -may be used to analyze three limiting cases of dualistic
- Chapter 5 development

II. Multiple Choice (15 points) and Fill in the
Blanks (10 points)
1. Population Growth
-Is not simply a problem of numbers. It is a problem of
human welfare and of development, as defined in
Chapter 1.
-can have serious consequences for the well-being of all
humanity
-Before 1650, it took nearly 36,000 years, or about
1,400 generations, for the world population to double.
Today it would take about 58 years, or two generations,
for world population to double at current growth rates.
-The world’s population is very unevenly distributed by
geographic region, by fertility and mortality levels, and
by age structures.
2. Birth Rate
-many developing countries today are considerably
higher than they were in pre-industrial western Europe
3. Poverty Line
4. Population Density
5. Death Rate
6. Population Pyramid
-A graphic depiction of the age structure of the
population, with age cohorts plotted on the vertical axis
and either population shares or numbers of males and
females in each cohort on the horizontal axis
7. Income Gap
8. Poverty Gap Index
9. Poverty Line
10. Population
11. Head Count Ratio
-Defined as the headcount index or H/N
-A graph depicting the variance of the size distribution
of income from perfect equality
-The numbers of income recipients are plotted on the
horizontal axis, not in absolute terms but in cumulative
percentages
-Shows the actual quantitative relationship between the
percentage of income recipients and the percentage of
the total income
14. Poverty Gap Index
15. Fertility Ratio
16. Demographic Transitions
-process by which fertility rates eventually decline to
low and stable levels has been portrayed by a famous
concept in economic demography
-attempts to explain why all contemporary developed
nations have more or less passed through the same
three stages of modern population history
-The phasing-out process of population growth rates
from a virtually stagnant growth stage, characterized by
high birth rates and death rates through a rapid-growth
stage with high birth rates and low death rates to a
stable, low-growth stage in which both birth and death
rates are low.
STAGE 1. For centuries, had stable or very slow-growing
as a result of high birth rates and almost equally to
high death rates
STAGE 2. MODERNIZATION, better public health
methods, healthier diets, higher income, etc. that led to
life expectancy from under 40 to over 60 years.
-Beginning of demographic transition

-Marked reduction in mortality

-The poverty line is set at a level that remains constant
in real terms so that we can chart our progress on an
absolute level over time
-The proportion of a country’s population living below
the poverty line.
STAGE 3. Beginning of decline in fertility
-Falling birth rates converged with lower death rates,
leaving little or no population growth.
-Began in late nineteenth century

17. Replacement Fertility

12. Dualistic Development
-introduced by Gary Fields
-The number of births per woman that would result in -dividing the TPG by the total population
stable population levels. 28. Poverty Gap
-Measures the total amount of income necessary to
-Can be well over 3 births per woman
raise everyone who is below the poverty line up to that
18. Rural Development line.
19. Urban Development
20. GDP -The sum of the difference between the poverty line
21. Family Planning Programs and actual income levels of all people living below that
22. Microeconomic Theory of Fertility line.
-The theory that family formation has costs and
benefits that determine the size of families formed II. Essay (50 points; 10 points, 20 points,)
1. Women empowerment
2. Many observers from poor and rich
countries that population is not the real
problem
i. Enumerate the 4 issues and
explain each of them
1. Underdevelopment
3. Absolute Poverty and Reduced
Inequality
Cd – Demand for surviving children
i. Can we eradicate absolute
(Y) – net price of children poverty and reduced
inequality?
Pc – potential child income and old-age support
4. Give 4 Health challenges that we may
Px – prices of all other goods face

Tx – tastes for goods relative to children

23. Population Poverty Cycle

24. Poverty
25. Absolute Poverty
-The situation of being unable or only barely able to
meet the subsistence essentials of food, clothing, and
shelter.

-Counted as the total number living below a specified

minimum level of real income—an international poverty
line.

-Sometimes measured by the number, or “headcount,”

H, of those whose incomes fall below the absolute
poverty line, Yp. When the headcount is taken as a
fraction of the total population, N.

26. Reproductive Choice

27. Average Proportional Income Gap
-TPG in a simplified way

- Amount of money per day it would take to bring every

poor person in an economy up to our defined minimum
income standards. On a per capita basis