MACROECONOMICS >C< W/MYECONLAB
18th Edition
ISBN: 9781323886038
Author: Pearson
Publisher: Pearson Custom Publishing
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Chapter 20, 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 GDP. However, a country that faces extreme poverty has to concern a number of areas such as hunger, illiteracy, child mortality, diseases, gender inequality, maternal mortality, environmental protection and so on. Therefore, the allocation of resources is not always enough to manage all the problems of extreme poverty.
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.
Economic growth is said to be a necessary but not
sufficient condition to eradicate absolute poverty
and reduce inequality. What is the reasoning
behind this argument?
Chapter 20 Solutions
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